Financial Crime World

Turkish Government Cracks Down on Money Laundering with Stricter Laws and Enforcement

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New Regulations Aim to Combat Financial Crime and Protect the Economy

The Turkish government has introduced a series of new laws and measures aimed at combating money laundering and terrorist financing. The new regulations include stricter penalties for individuals and legal entities involved in illegal activities, as well as enhanced asset forfeiture laws.

Stricter Penalties for Individuals

  • Witnesses and victims who are called to testify in court can apply for witness protection programs if they have been affected by crimes committed by organized criminal groups.
  • Individuals who knowingly buy or use property linked to money laundering offenses can face imprisonment terms of between two and five years.
  • The laws also impose stricter penalties on legal entities that engage in illegal activities, including fines of up to 54 million lira for fraud, bribery, and other financial crimes committed on behalf of the entity.

Fast-Track Procedure for Money Laundering Cases

The government has introduced a fast-track procedure for money laundering cases, which allows suspects to accept public prosecutor proposals and receive reduced sentences. This aims to streamline the process and ensure that those involved in illegal activities are held accountable more quickly.

Strengthened Asset Forfeiture Laws

  • The Turkish authorities have strengthened their asset forfeiture laws, allowing them to confiscate assets linked to criminal activity, including those held by legal entities.
  • In cases where assets are frozen, victims may seek compensation under general provisions of the law of obligations.

Seizure of Assets and Appointments of Trustees

According to article 128 of the Criminal Procedure Law, the government can seize a wide range of assets, including immovables, vehicles, bank accounts, and other financial instruments, in cases where there is material suspicion that the assets were acquired as a result of criminal activity. A trustee may also be appointed to companies suspected of money laundering.

Limitation Period for Prosecuting Money Laundering Offenses

The limitation period for prosecuting money laundering offenses has been set at 15 years, and Turkish laws have extraterritorial reach, applying to crimes committed abroad if they affect Turkey or involve Turkish citizens.

Conclusion

The new measures aim to strengthen Turkey’s efforts to combat financial crime and protect its economy from the risks of money laundering and terrorist financing. The stricter penalties and enhanced asset forfeiture laws are designed to deter individuals and legal entities from engaging in illegal activities, and to ensure that those who do are held accountable for their actions.