Financial Crime World

Turkey’s Financial Crimes Investigation Board Cracks Down on Money Laundering

Money laundering is a significant concern for financial institutions and individuals alike in Turkey. The Turkish Financial Crimes Investigation Board (MASAK) plays a crucial role in preventing and exposing these crimes, ensuring that the country complies with international anti-money laundering (AML) and counter-terrorism financing (CTF) standards.

Compliance Requirements

To comply with AML/CTF regulations in Turkey, financial institutions must establish a comprehensive program that includes:

  • Onboarding principles
  • Due diligence procedures for customers
  • Suspicious transaction reporting
  • Documentation requirements
  • Independent audits
  • Notification to the Customs administration

The goal is to ensure that Turkey’s legal system meets international standards.

Reporting Suspicious Transactions

One of the key compliance requirements is reporting suspicious transactions to MASAK. This must be done regardless of the value of the transaction, and can include multiple transactions evaluated together. Any information, suspicion or reasonable ground to suspect money laundering or terrorism financing must be reported:

  • Within ten working days
  • Immediately if delay would be inconvenient

Penalties for Non-Compliance

Those who fail to report suspicious transactions or breach confidentiality rules face severe penalties, including:

  • Imprisonment ranging from one to three years
  • Fines up to $5,000

MASAK does not have the authority to approve or cancel transactions, and its identity must not be mentioned during transactions to avoid misleading customers.

MASAK’s Role

As a financial intelligence agency under the Ministry of Finance and Treasury, MASAK plays a critical role in:

  • Analyzing developments in money laundering and terrorism financing
  • Formulating policies
  • Conducting investigations and audits
  • Reporting on its findings

By understanding Turkey’s AML/CTF regulations and compliance requirements, financial institutions can minimize the risk of money laundering and maintain their reputation in the international community.