Financial Crime World

Turkey Introduces Tough Banking Regulations to Combat Anti-Money Laundering and Terrorism Financing

Turkey has introduced stringent banking regulations aimed at enhancing anti-money laundering (AML) and combating the financing of terrorism (CFT) measures.

Enforcing AML/CFT Regulations in Turkey

The Financial Crimes Investigation Board (MASAK), Turkey’s financial intelligence agency, is responsible for enforcing these regulations. According to MASAK, designated parties, including financial companies, must:

  • Conduct thorough due diligence on customers
  • Disclose suspected transactions
  • Maintain records upon request

Compliance Requirements

Compliance with AML/CFT regulations in Turkey requires a robust program that includes:

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

Failure to comply can result in severe penalties.

Reporting Suspicious Transactions to MASAK

Reporting suspicious transactions to MASAK is mandatory. Any information, suspicion, or reasonable ground to suspect is sufficient for reporting a suspicious transaction. The compliance officer appointed by the Board of Directors must report suspicious transactions to MASAK within ten working days of suspicion arising.

Suspicious transactions can also be reported if found in press reports or other sources.

International Standards and Compliance

Turkey’s AML/CFT regulations are designed to ensure compliance with international standards. To help financial institutions comply, MemberCheck offers a secure and simple solution for scanning for politically exposed or high-risk individuals and checking names against sanction, regulatory, law enforcement, and official lists.

Benefits of Using MemberCheck

Financial institutions can rely on MemberCheck’s:

  • Sophisticated scan filters
  • Due diligence workflow
  • Easy access to customer details
  • Customizable reports for auditing purposes

This platform allows financial institutions to minimize false matches and streamline reporting, ensuring compliance with AML/CFT regulations.

Protecting Turkey’s Financial System

Turkey’s AML/CFT regulations aim to protect the country’s financial system from illegal activities. Financial institutions must ensure compliance with these regulations to avoid penalties and maintain a reputation for integrity.