Turkey Cracks Down on Money Laundering and Terrorist Financing with Tough New Regulations
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Turkey has introduced stringent regulations to curb money laundering and terrorist financing, making it a criminal offense to engage in such activities. The country’s anti-money laundering (AML) and combating the financing of terrorism (CFT) laws aim to prevent the misuse of financial systems for illegal purposes.
New Regulations for Specific Sectors
Under the new regulations, individuals and businesses operating in specific sectors, including:
- Banking
- Insurance
- Capital markets
- Real estate
will be required to register and report suspicious transactions. The measures aim to detect and prevent money laundering and terrorist financing activities.
Obligations of Obligated Parties
The AML/CFT laws require obligated parties to:
- Implement internal controls
- Conduct customer identification
- Submit periodic reports
Failure to comply with these obligations can result in imprisonment of up to three years and a judicial fine of up to 5,000 days.
Enforcement and Penalties
The country’s Financial Crimes Investigation Board (MASAK) is responsible for enforcing the regulations and has the authority to impose administrative fines on obligated parties who fail to comply with the rules.
Extra-Territorial Reach
Turkey’s AML/CFT laws also have extra-territorial reach, allowing authorities to freeze assets of individuals and entities designated by the United Nations Security Council (UNSC).
Commitment to International Standards
The new regulations demonstrate Turkey’s commitment to upholding international standards and protecting its financial system from illegal activities.
Contact Information
MASAK (Mali Suçları Araştırma Kurulu/Financial Crimes Investigation Board) Address: T. C. Hazine ve Maliye Bakanlığı, Devlet Mahallesi Dikmen Caddesi No: 12, 06420 Çankaya, Ankara Phone: +90 312 415 2900