Turkey Takes Steps to Enhance Anti-Money Laundering Measures, But More Work Remains

Strengthening Anti-Money Laundering Mechanisms in Turkey

ISTANBUL - Turkey has made significant strides in strengthening its anti-money laundering (AML) mechanisms, but more efforts are needed to fully comply with international standards, according to experts. The country has been working to implement recommendations from the Financial Action Task Force (FATF), a global standard-setting body for AML and combating the financing of terrorism.

Enhancing Financial Intelligence Unit Capabilities

Turkey’s financial intelligence unit, MASAK, has taken steps to enhance its capabilities in detecting and preventing money laundering. However, despite these efforts, Turkey still faces challenges in addressing structural problems that hinder its ability to combat money laundering effectively.

Structural Challenges Remain

Companies operating in the country need to remain vigilant and ensure their compliance with AML regulations is up-to-date, experts warn. According to FATF standards, Turkey must continue to take necessary measures to prevent money laundering and terrorist financing.

Proactive Measures Needed from Financial Sector

The country’s financial sector must also be more proactive in identifying and reporting suspicious transactions. Turkey has been under increased scrutiny from international authorities due to concerns over its AML regime.

Historical Context

In 2021, the FATF placed Turkey on a list of high-risk jurisdictions, citing shortcomings in its AML/CFT (Combating the Financing of Terrorism) systems.

Government Efforts to Address Concerns

The Turkish government has made efforts to address these concerns, including strengthening its financial intelligence unit and enhancing its regulations for reporting suspicious transactions. However, more work is needed to ensure that Turkey’s AML regime is robust enough to prevent money laundering and terrorist financing.

Responsibilities of Companies Operating in Turkey

Companies operating in Turkey must be aware of the country’s AML requirements and ensure their compliance with these regulations. This includes:

• Implementing effective AML/CFT systems
• Conducting regular training for employees
• Reporting suspicious transactions to the relevant authorities

Conclusion

While Turkey has made progress in strengthening its anti-money laundering measures, more efforts are needed to fully comply with international standards. Companies operating in the country must remain vigilant and ensure their compliance with AML regulations is up-to-date to avoid potential legal and reputational risks.