Financial Crime World

Turkish Independent Attorneys Must Comply with Customer Identification and Reporting Requirements

New Regulation Imposes Stricter Requirements

In light of concerns over the accuracy or sufficiency of previously obtained customer information, Turkish independent attorneys are now under obligation to conduct thorough customer identification procedures and report suspicious transactions to the Financial Crimes Investigation Board (MASAK).

Know-Your-Customer (KYC) Checks Required

According to a recent regulation, independent attorneys must identify their clients through a know-your-customer (KYC) check, regardless of the transaction amount. This requirement applies not only to financial transactions but also to non-financial activities such as real estate purchases.

  • Information required for KYC checks:
    • Client’s identity
    • Nationality
    • Address
    • For legal entities: trade name, trade registry number, and authorized representative details

Reporting Suspicious Transactions

Independent attorneys are also required to report suspicious transactions to MASAK, defined as any transaction that may have been acquired or used illegally, including those linked to terrorist activities. The reporting obligation applies regardless of the transaction amount.

  • Examples of suspicious transactions:
    • Illegal financial activities
    • Terrorist financing
    • Money laundering

Retention and Availability of Customer Identification Documents

In addition to KYC checks and reporting requirements, independent attorneys must retain customer identification documents for eight years from the last transaction date and make them available upon request by authorized bodies.

  • Penalties for non-compliance:
    • Administrative fines up to TRY 50,000

Strengthening Turkey’s AML/CFT Framework

The regulation aims to strengthen Turkey’s anti-money laundering and combating the financing of terrorism (AML/CFT) framework and ensure that independent attorneys play a vital role in preventing financial crimes.

  • Experts advise seeking specialist advice on specific circumstances to ensure compliance with new regulations.