Financial Crime World

Unraveling the Complex World of Financial Crime in Türkiye

Introduction

Financial crime, also known as economic crime, is a growing concern worldwide that is primarily committed in a professional setting, targeting the economic system without involving violence. In Türkiye, this covert yet potentially devastating phenomenon is becoming increasingly prominent. In this article, we aim to provide an overview of financial crime in Türkiye, its various forms, and the efforts being made to combat it.

Understanding Financial Crime

  • Definition: Financial crime, or economic crime, consists of acts that impact the economic order [1]
  • Professional Element: This type of crime involves the use or abuse of one’s professional title, position, or expertise [2]
  • Examples: embezzlement, abuse of trust, forgery, counterfeiting, bribery, and money laundering [3]

Differentiating Financial Crime from White-Collar Crime

  • Background: White-collar crime is a broader term that applies to various crimes committed by professionals
  • Definition: In Türkiye, financial crime is classified as such only when it has a significant impact on the economic order

Common Types of Financial Crime

  1. Embezzlement: Misappropriation of assets by an individual in a position of trust
  2. Abuse of Trust: Breach of duty or misuse of resources for personal benefit
  3. Forgery: Imitating or altering the authenticity of a document
  4. Counterfeiting: Creating and distributing inferior imitations of genuine currency or goods
  5. Bribery: Offering, giving, or receiving money in exchange for improper influence
  6. Fraud: Intentionally deceptive or misrepresentative practices to acquire benefits
  7. Money Laundering: Disguising illicit profits as legitimate earnings
  8. Usury: Lending money at exorbitant interest rates
  9. Terrorist Financing: Providing financial resources to terrorist organizations
  10. Tax Offenses: Deliberately evading or reducing tax liability
  11. Violation of Capital Markets Regulations: Breaching securities and exchange regulations for unfair advantage

Combating Financial Crime: Türkiye’s Progress

  • Background: Türkiye joined the Financial Action Task Force (FATF) in 1991 to combat financial crimes, money laundering, and terrorist financing
  • Preventive Measures: Customer due diligence, record keeping, and suspicion reporting
  • Recent Developments: Enhancing financial infrastructure to deter and minimize financial crimes

Conclusion

Understanding the different types of financial crime and the efforts being made to combat it is crucial for individuals and organizations to preserve the integrity of the economic system and uphold the principles of honesty and integrity in Türkiye.

References: [1] K. S. Mert, “The Economic Crimes: The Interaction between Turkish Criminal and Administrative Law,” International Journal of Law, Crime and Justice, vol. 52, no. 1, 2013, pp. 13–29. [2] Turkish Penal Code, Article 216. [3] Turkish Penal Code, Articles 215, 218, 219, 220, 223, 224, 225, 228, 229, and 230.