Financial Crime World

Financial Crime Investigation Techniques in Turkey: A Comprehensive Overview

In a bid to combat financial crimes, Turkey’s Financial Crimes Investigation Board (MASAK) has been at the forefront of investigating and preventing money laundering and terrorism financing offenses. In this article, we delve into the world of financial crime investigation techniques in Turkey, highlighting the key requirements for compliance with Anti-Money Laundering/Countering the Financing of Terrorism (AML/CTF) regulations.

MASAK: The Turkish Financial Crimes Investigation Board

As a financial intelligence agency under the Ministry of Finance and Treasury, MASAK plays a crucial role in analyzing developments related to money laundering and formulating strategies for preventing and exposing such offenses. The agency is also responsible for conducting investigations, audits, and reporting on its findings.

Complying with AML/CTF Regulations in Turkey

To ensure compliance with international standards, Turkish financial institutions are required to establish a robust compliance program that includes several key components:

  • Onboarding Principles: Establishing clear principles for customer onboarding
  • Due Diligence Principles for Customers: Conducting thorough due diligence on customers
  • Suspicious Transaction Reporting Procedures: Reporting suspicious transactions to MASAK
  • Documentation Principles: Maintaining and submitting relevant information and records
  • Independent Audits: Performing regular independent audits
  • Notification to the Customs Administration: Notifying the Customs administration of AML/CTF violations

Financial institutions in Turkey must also perform due diligence on their customers, disclose transactions suspected of involving money laundering or terrorism financing to MASAK, and maintain and provide relevant information and records upon request.

Reporting Suspicious Transactions to MASAK

Reporting suspicious transactions is a critical compliance requirement for Turkish financial institutions. According to regulations, MASAK must be notified of any suspicious transactions, regardless of their value. The term “transaction” can refer to multiple transactions, and multiple suspicious transactions must be evaluated together in a single Suspicious Transaction Report (STR) form.

The “compliance officer” appointed by the Board of Directors is responsible for reporting suspicious transactions to MASAK. Such reports must be submitted within ten working days of the suspicion arising, or immediately if any delay would be inconvenient.

Protecting Confidentiality

It is crucial that financial institutions maintain confidentiality when dealing with suspicious transaction reports. Except in cases where examiners are assigned to supervision or courts during the judicial process, suspicious transaction reporting and relevant internal reports must not be disclosed to anyone, including parties involved in the transaction. Those who breach this rule face a sentence of imprisonment ranging from one to three years, as well as a fine of up to $5,000.

Avoiding Misleading Customers

MASAK emphasizes that its agency should not be mentioned as a reference when conducting transactions, as it does not have the authority or function to approve or cancel transactions under applicable legislation. This is crucial to avoid misleading customers and ensuring transparency in financial transactions.

Conclusion

In conclusion, Turkey’s Financial Crimes Investigation Board (MASAK) plays a vital role in investigating and preventing financial crimes. To ensure compliance with AML/CTF regulations, Turkish financial institutions must establish robust compliance programs that include key components such as onboarding principles, due diligence, suspicious transaction reporting procedures, documentation principles, independent audits, and notification to the Customs administration. By staying informed about the latest requirements and best practices in financial crime investigation techniques in Turkey, financial institutions can better navigate the complex landscape of AML/CTF regulations and protect their reputation and customers from financial crimes.