Turkey’s Financial Sector Takes Steps to Combat Money Laundering, Terrorist Financing
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ANKARA, Turkey - In a bid to strengthen its financial system and prevent illegal activities, Turkey has implemented several measures to combat money laundering and terrorist financing.
Strengthening AML/CFT Requirements
According to regulatory bodies, lawyers, accountants, realtors, and gemstone vendors in Turkey are now required to adhere to Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) requirements. This includes:
- Reporting suspicious transactions to the Financial Crimes Investigation Board (MASAK)
- Preserving transactional data
International Cooperation
MASAK, responsible for ensuring regulatory oversight and enforcing conformity among financial institutions, has developed bilateral pacts with multiple countries to share data and collaborate on cases. Turkey has also joined several intergovernmental groups and projects focused on improving worldwide AML/CFT efforts.
Depositor Protection Scheme
In addition to combating money laundering and terrorist financing, Turkey’s banking system is protected by a robust depositor protection scheme. The Banking Regulation and Supervision Agency (BRSA) oversees the scheme, which ensures that depositors’ rights are safeguarded up to TRY400,000 per account.
The Depositors’ Protection Fund (DPF), managed by the Savings Deposit Insurance Fund (SDIF), provides insurance coverage for deposits in case of bank failures. The fund is funded through contributions from banks and recovery efforts from failed banks.
Bank Secrecy Requirements
Turkey has established a comprehensive Regulation on Sharing of Secret Information to protect customer privacy while allowing necessary disclosures. Banks are required to maintain confidentiality, except under specific circumstances such as:
- Court orders
- Requests from regulatory authorities
A breach of banking secrecy can result in serious consequences, including legal and criminal penalties. The regulation emphasizes the continuity of the obligation to maintain secrecy, even if an individual leaves their position.
Prudential Regime
Turkey’s prudential regime requires banks to adhere to capital, liquidity, and risk control requirements aligned with international standards, such as Basel III. The BRSA oversees the implementation of these requirements, which aim to ensure the stability and soundness of Turkey’s banking system.
Conclusion
As part of its efforts to strengthen financial stability, Turkey is committed to implementing robust measures to combat money laundering, terrorist financing, and other financial crimes. By doing so, the country aims to maintain public trust in its financial system and promote economic growth.