Financial Crime World

Turkey’s Financial Intelligence Unit Tightens Compliance Regulations to Combat Money Laundering and Financial Crimes

In a significant move to strengthen its efforts against money laundering and financial crimes, Turkey’s Financial Crimes Investigation Board (MASAK) has updated its regulations to align with the standards set by the Financial Action Task Force (FATF). The revised regulations aim to prevent the misuse of financial systems and protect the country’s economic security.

Key Changes in the Regulations

Expanded Scope of Obliged Parties

The scope of obliged parties has been expanded to include non-financial institutions such as:

  • Lawyers
  • Accountants
  • Real estate agents who engage in certain transactions

New Requirements for Customer Identification

  • Increasing the threshold for transaction limits from 20,000 Turkish Lira (TL) to TL 75,000
  • Raising electronic transfer limits from TL 2,000 to TL 7,500

Strengthened Oversight of Financial Institutions

  • Requiring financial institutions to establish a group-level compliance program and assign a compliance officer and assistant
  • Conducting regular audits to ensure compliance with the regulations
  • Imposing penalties on violators

Why the Changes?

The revised regulations are designed to address deficiencies identified in Turkey’s Mutual Evaluation Report, published in December 2019. The report recommended that Turkey take steps to improve its anti-money laundering and combating the financing of terrorism (AML/CFT) regime.

Consequences of Non-Compliance

Failure to comply with the regulations could result in:

  • Administrative fines
  • License revocation

Helping Financial Institutions Adapt

To ease the transition, Sanction Scanner AML Compliance Solutions offers AI-powered compliance solutions that can be easily integrated into existing systems.

MASAK’s Role in Combating Financial Crimes

As Turkey’s Financial Intelligence Unit, MASAK is responsible for:

  • Identifying money laundering and risks to economic security
  • Collecting data on suspicious transactions
  • Reporting to relevant authorities

The agency plays a crucial role in preventing financial crimes and protecting the country’s economy.

Implications for Turkey’s Financial Sector

The new regulations are expected to have far-reaching implications for Turkey’s financial sector, requiring financial institutions to adapt their compliance programs and internal controls to meet the revised standards.