Financial Crime World

Turkey Introduces KYC Requirements for Independent Attorneys

The Turkish government has taken a significant step in preventing the proliferation of financing weapons of mass destruction by introducing new Know Your Client (KYC) requirements for independent attorneys.

New Regulations Aim to Prevent Financing of Terrorism and Criminal Activities

As part of an effort to prevent the financing of terrorism and other criminal activities, the Law Proposal on Preventing the Proliferation of Financing Weapons of Mass Destruction has been accepted by the Grand National Assembly of Turkey. The proposal provides several significant amendments to the Law No. 5549 on Prevention of Laundering of Crime Revenues.

Requirements for Independent Attorneys

Under the new regulations, independent attorneys will be required to:

  • Identify their clients and verify their identities through documents regulated in Turkish legislation
  • Collect information including:
    • Name and surname
    • Birthplace and date
    • Parents’ name
    • Nationality
    • Identification number for Turkish citizens

Reporting Suspicious Activities and Transactions

Independent attorneys will also be required to report any suspicious activities or transactions that may be related to illegal financing of terrorism or other criminal activities to the Financial Crimes Investigation Board (MASAK) as part of their obligation as obliged parties. Failure to comply with these obligations may result in administrative fines ranging from 30,000 Turkish Liras to 50,000 Turkish Liras.

Document Retention and Disclosure

The new regulations also require independent attorneys to:

  • Keep documents on customer identification for eight years
  • Provide them upon request by authorized bodies

Expert Opinion

In a statement, Gönenç Gürkaynak, Esq., an expert in the field of financial crimes investigation, said: “These new regulations aim to prevent the financing of terrorism and other criminal activities through the use of independent attorneys. We believe that these measures will significantly contribute to the fight against money laundering and terrorist financing.”

Contact: Gönenç Gürkaynak, Esq. Email: gonenc.gurkaynak@elig.com