Financial Crime World

Turkey Issues New Guidelines for Wire Transfers to Combat Financial Crime

Introduction

The General Directorate of Customs Enforcement in Istanbul has issued a new circular (2013/1) outlining the procedures for requesting disclosure from passengers to combat financial crime. This circular aims to strengthen Turkey’s efforts to prevent money laundering and terrorist financing activities.

Requirements for Wire Transfers

  • Financial institutions, including money remitters, must identify the originator of electronic fund transfers and maintain this information throughout the payment chain.
  • Enhanced scrutiny will be applied to transfers lacking complete information on the originator or beneficiary.
  • Full originator information must be provided, including:
    • Name and surname
    • Account number or reference number
    • Address or place and date of birth
    • TR-ID number, passport number, tax ID number

Obligations for Wire Transfers

  • The obligation to provide wire transfers is stipulated in Article 24 of the Regulation on Money Laundering (RoM), which applies to cross-border and domestic transfers between financial institutions.
  • Transfers defined in Article 24(2) are exempt from this requirement.

Retention of Records

  • Financial institutions must retain necessary records regarding transactions for a period of 8 years.
  • Measures must be taken to control information required to be placed in wire transfer messages, complete missing information and documents.

Monitoring and Control of Activities

  • Banks and PTT Bank are required to take measures to monitor and control activities related to wire transfers, including completing missing information and updating it when necessary.

Suspicious Transaction Reporting

  • Financial institutions must file a Suspicious Transaction Report (STR) with the Financial Crimes Investigation Board (MASAK) in case of unusual transactions or lack of full originator information.

Harmonization with EU Directives and Regulations

  • Turkey has committed to harmonizing its anti-money laundering/counter-terrorism financing (AML/CFT) legislation with relevant EU directives and regulations.
  • The country is also a member of the Egmont Group of Financial Intelligence Units, which enables it to exchange intelligence with other countries.

Coordination Board for Combating Financial Crimes

  • The Coordination Board for Combating Financial Crimes, led by MASAK, has been established to improve cooperation among relevant institutions in the AML/CFT field.

Conclusion

The new circular aims to strengthen Turkey’s efforts to combat financial crime and protect its financial system from money laundering and terrorist financing activities.