Turkey Enhances Compliance with International Anti-Money Laundering and Terrorist Financing Standards
Risk-Based Approach Crucial for Effective Compliance
The Financial Action Task Force (FATF) has evaluated Turkey’s implementation of anti-money laundering and counter-terrorist financing regulations, highlighting areas where the country has made significant progress in addressing illicit financial activities.
Implementing a Risk-Based Approach
A risk-based approach is essential for effective compliance. This involves assessing and mitigating risks associated with various sectors and entities. In Turkey’s case, high-risk areas such as correspondent banking relationships and money or value transfer services require attention.
Key Areas Requiring Improvement
While progress has been made in implementing FATF recommendations, several key areas need attention:
- National cooperation and coordination: Improved coordination between law enforcement agencies, regulators, and other stakeholders is necessary for a comprehensive approach to combating illicit financial activities.
- Money laundering offence: Turkey’s laws and regulations regarding money laundering offences require clarification and strengthening to ensure consistency with international standards.
- Targeted financial sanctions related to terrorism and terrorist financing: Enhancing capacity to impose and implement targeted financial sanctions effectively is recommended.
Sector-Specific Recommendations
The FATF has issued recommendations specific to various sectors:
Financial Institutions Secrecy Laws
- Review secrecy laws to ensure consistency with international standards.
- Establish clear guidelines and regulations for correspondent banking relationships.
Customer Due Diligence
- Strengthen customer due diligence procedures to prevent the misuse of services for illicit activities.
Correspondent Banking
- Establish clear guidelines and regulations for correspondent banking relationships.
International Cooperation
The FATF emphasizes the importance of international cooperation in combating money laundering and terrorist financing. Turkey is encouraged to enhance collaboration with other countries, including through information exchange and mutual legal assistance.
Conclusion
Turkey’s efforts to implement anti-money laundering and counter-terrorist financing regulations have been acknowledged by the FATF. By addressing recommendations for improvement, Turkey can strengthen its position in the global fight against illicit financial activities.