Turkey Introduces Stricter Reporting Requirements for Funds Transfers

The Central Bank of Turkey (CBRT) has implemented a set of stringent reporting requirements for funds transfers, aiming to enhance anti-money laundering and combating terrorism financing (AML/CFT) measures in the country.

Enhanced Transparency through Real-Time Reporting

Effective January 1, 2023, banks and other financial institutions are required to report all electronic funds transfers exceeding TRY 10,000 (approximately USD 570). The CBRT Payment Systems, including the Electronic Fund Transfer (EFT) System and the Electronic Securities Transfer System (ESTS), have been upgraded with real-time reporting capabilities.

Key Features of the New Regulations

• Detailed Reporting Requirements: Financial institutions must submit detailed information on all transfers exceeding TRY 10,000.
• Real-Time Reporting Capabilities: The CBRT Payment Systems now facilitate instant and secure transactions with real-time reporting.
• Identification and Verification: Banks are required to verify the identities of customers involved in large transactions and maintain records for at least five years.

Instant and Continuous Transfer of Funds (FAST)

The CBRT has introduced a new system called Instant and Continuous Transfer of Funds (FAST), which enables customers to send payment orders 24/7 via system participants. The FAST System provides instant payments, with funds available in the recipient’s account within seconds.

Collaboration and Compliance

The CBRT emphasizes the importance of collaboration between financial institutions and regulatory authorities to combat money laundering and terrorism financing. Banks are advised to familiarize themselves with the new rules and ensure compliance to avoid potential penalties or fines.

As the CBRT continues to implement its new regulations, it is likely that further updates and enhancements will be made to the reporting requirements and systems in place.