Financial Crime World

Turkey Takes Measures to Prevent Money Laundering and Terrorist Financing

Combating Financial Crimes in Turkey

In its ongoing efforts to combat money laundering and terrorist financing, Turkey has implemented a range of measures to prevent the misuse of wire transfer messages. The country’s regulatory framework is based on regional and multilateral anti-money laundering initiatives, including those of the Financial Action Task Force (FATF).

  • System for Mutual Legal Assistance: Turkey has established a system for mutual legal assistance (MLA) requests related to money laundering investigations. These requests are transmitted to the Ministry of Justice, which then refers them to the relevant office of prosecutor or other authorities for fulfillment.
  • Egmont Group Membership: Turkey is a member of Egmont Group, a global network of financial intelligence units that shares information and best practices to combat financial crime. MASAK has been exchanging intelligence with its counterparts via Egmont Secure Web since 2001.

Information Exchange and Cooperation

  • Information Collection: MASAK collects information from public institutions, organizations, and individuals.
  • Data Sharing Protocols: The country has signed protocols to gather data on tax records, real estate transactions, and other matters.
  • Coordination Board for Combating Financial Crimes: To further improve cooperation in the AML/CFT field, a Coordination Board was established under the chairmanship of the Under-Secretary of the Ministry of Finance. The board brings together relevant institutions and organizations to evaluate draft laws and regulations and coordinate implementation efforts.

Regulatory Framework

  • FATF Standards: Turkey has committed to implementing FATF standards and has prepared its AML/CFT legislation in line with these requirements.
  • Regulatory Measures: Financial institutions are required to return or obtain missing information from the originating institution when receiving a wire transfer message that lacks full originator information. Failure to comply can result in refusal of the wire transfer, restriction of transactions with related financial institutions, or even termination of business relationships.

Conclusion

Turkey’s efforts to prevent money laundering and terrorist financing are ongoing and multifaceted. By strengthening cooperation among relevant institutions and implementing effective regulatory measures, the country is working to protect its financial system from abuse and ensure a safe and stable environment for economic growth.