Financial Crime World

Turkey Takes Proactive Approach to Combat Money Laundering, Adheres to Global Standards

Introduction

In its efforts to maintain the integrity of its financial systems and combat financial crimes, Turkey has implemented stringent anti-money laundering (AML) laws and regulations. As a country with a strategic geographical location, it is susceptible to money laundering risks, but its commitment to global cooperation and adherence to international standards has enabled it to effectively prevent and detect these illegal activities.

The Role of the Financial Crimes Investigation Board (MASAK)

MASAK plays a pivotal role in implementing regulations, conducting investigations, and sharing intelligence with relevant stakeholders. Turkey’s legal framework is built around Law No. 5549 on Prevention of Laundering Proceeds of Crime, enacted in 2006, as well as the Turkish Penal Code, which criminalizes money laundering activities.

International Cooperation

Turkey engages with international bodies such as the Financial Action Task Force (FATF) and participates in mutual evaluations, adhering to FATF recommendations. This demonstrates its commitment to global cooperation against financial crimes.

Key AML Laws and Regulations

  • Law No. 5549 on Prevention of Laundering Proceeds of Crime
  • Turkish Penal Code
  • Banking Law
  • Law on Regulation of Payment Services and Electronic Money Institutions
  • Capital Markets Law

These laws outline the obligations of financial institutions, reporting entities, and supervisory bodies to prevent and detect money laundering activities.

Government Coordination and Supervision

The government plays a crucial role in coordinating AML efforts. The Ministry of Finance and Treasury oversees MASAK and regulatory agencies such as the Banking Regulation and Supervision Agency (BDDK) and the Capital Markets Board (SPK) are responsible for supervising financial institutions’ compliance with AML regulations.

Unique Geographical Location and Money Laundering Risks

Turkey’s unique geographical location poses specific money laundering risks, including:

  • Trade-based money laundering
  • Informal financial systems
  • Real estate sector
  • Corruption and political instability
  • Virtual currencies and online transactions
  • Cross-border movements
  • Terrorist financing

To address these risks, the country has implemented measures to enhance its AML capacity, including the use of advanced technologies and international cooperation.

Conclusion

Turkey’s proactive approach to combating money laundering demonstrates its commitment to maintaining the integrity of its financial systems and adhering to global standards. By implementing stringent AML laws and regulations, collaborating with international bodies, and leveraging advanced technologies, Turkey has effectively prevented and detected money laundering activities, making it an attractive destination for businesses and investors.