Financial Crime World

Turkey Cracks Down on Financial Crimes: Regulatory Bodies Take Center Stage

In its ongoing efforts to combat financial crimes, Turkey has established several regulatory bodies to monitor and prevent money laundering and terrorism financing. At the forefront of this effort is the Turkish Financial Crimes Investigation Board (MASAK), which serves as a financial intelligence agency under the Ministry of Finance and Treasury.

Compliance Requirements

Financial institutions in Turkey are required to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, which involve:

  • Performing due diligence on customers
  • Disclosing suspected transactions to MASAK
  • Maintaining accurate records

The goal is to ensure that Turkey’s legal system meets international standards.

Reporting Suspicious Transactions

One of the key obligations for financial institutions in Turkey is to report suspicious transactions to MASAK. This involves:

  • Notifying MASAK of any transactions that may be linked to money laundering or terrorism financing, regardless of their value
  • Reporting these transactions within 10 working days of suspicion arising

The compliance officer appointed by the Board of Directors is responsible for reporting these transactions.

Consequences of Non-Compliance

Failure to comply with AML/CTF regulations can result in:

  • Severe penalties, including imprisonment and fines
  • Reputational damage and loss of customer trust

MemberCheck: A Solution for Compliance

To help financial institutions navigate the complexities of AML/CTF compliance, MemberCheck offers a range of solutions, including:

  • Politically exposed person (PEP) and sanction checks
  • Adverse media screening
  • Identity verification
  • Enhanced due diligence
  • Jurisdictional risk assessments

These services provide a secure and efficient way to identify potential risks and ensure compliance with regulatory requirements.

Conclusion

Turkey’s regulatory bodies are playing a crucial role in combating financial crimes, and financial institutions must comply with AML/CTF regulations to avoid penalties and maintain their reputation. With the right tools and expertise, compliance can be achieved efficiently and effectively.