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Turkey’s Financial Crimes Investigation Board Clarifies Beneficial Owner Obligations

The Turkish Financial Crimes Investigation Board (MASAK) has issued a statement clarifying obligations regarding the notification of beneficial owners in transactions involving customers who are companies with shares quoted on Borsa Istanbul Anonim Şirketi.

Identifying Beneficial Owners

According to MASAK, the obligation to notify the beneficial owner may not be complied with in transactions where the customer or its majority shareholder holding more than 50% of shares is a company whose shares are listed on Borsa Istanbul Anonim Şirketi.

In cases where simplified measures can be applied, identification of the beneficial owner is not necessary. These cases include:

  • Transactions between financial institutions
  • Cases involving international organizations such as the International Monetary Fund and the World Bank
  • Transactions related to pension contracts, pension plans, and life insurance contracts
  • Transactions involving public administrations or institutions
  • Transactions where the customer is a publicly listed company

However, MASAK has noted that there is no explicit regulation regarding simplified measures in the Communiqué. The agency believes that simplified measures can be applied in cases where identification of beneficial owners is required, but not where institutions are obliged to notify their own beneficial owners to the RA.

Simplified Measures

MASAK has also provided guidance on identifying beneficial owners in companies controlled by public authorities. The agency believes that the highest-level executive officer of the company, rather than the public authority’s highest-level executive officer, should be identified as the beneficial owner.

Frequently Asked Questions

MASAK has also addressed several frequently asked questions, including:

  • Who will be considered the beneficial owner if some shareholders have privileges? Individuals with ultimate control over the company must be identified as beneficial owners.
  • If one shareholder owns less than 25% of a company but has ultimate control, who will be identified as the beneficial owner? Both the natural person controlling the company and the natural person holding more than 25% of shares should be notified to RA.

The full text of MASAK’s statement can be found on its website.