Financial Crime World

Combating Money Laundering and Terrorist Financing in Turkey

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Turkey has a robust legal framework in place to prevent money laundering and terrorist financing. The country’s anti-money laundering (AML) and combating the financing of terrorism (CFT) legislation is based on several key laws, regulations, and guidelines.

Definitions and Penalties

The Turkish Criminal Code defines money laundering as the act of transferring or concealing criminal proceeds to disguise their illegal origin. According to the code, penalties for money laundering range from imprisonment for up to five years to a fine of up to TRY 250,000 (approximately $35,000).

Combating Money Laundering Law

The Combating Money Laundering Law, enacted in 2006, requires financial institutions and other designated businesses to implement AML/CFT measures, including:

  • Customer identification
  • Suspicious transaction reporting
  • Internal control systems

The law also establishes the Financial Crimes Investigation Board (MASAK) as the primary enforcement agency.

Regulations and Guidelines

In addition to the Combating Money Laundering Law, Turkey has implemented various regulations and guidelines to strengthen its AML/CFT regime, including:

Regulation on Customer Identification, Suspicious Transaction Reporting, and Internal Control Systems

  • Sets out specific requirements for customer identification, suspicious transaction reporting, and internal control systems
  • Applies to financial institutions and other designated businesses

Guidelines on AML/CFT for Financial Institutions

  • Provides further guidance on implementing AML/CFT measures
  • Specifically targets financial institutions

Regulation on Customer Identification, Suspicious Transaction Reporting, and Internal Control Systems for Insurance Companies and Other Designated Businesses

  • Applies similar requirements to insurance companies and other designated businesses

International Cooperation

Turkey has taken steps to improve international cooperation in combating money laundering and terrorist financing. The country is a member of various international organizations, including:

  • Financial Action Task Force (FATF)
  • International Monetary Fund (IMF)
  • Organization for Economic Cooperation and Development (OECD)

Evaluations and Recommendations

Turkey’s AML/CFT regime has been subject to several evaluations and recommendations from international organizations. In 2014, the FATF recommended that Turkey strengthen its AML/CFT framework, particularly in terms of customer identification and suspicious transaction reporting. Since then, Turkey has made significant progress in implementing these recommendations.

Conclusion

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In conclusion, Turkey has a comprehensive legal framework in place to combat money laundering and terrorist financing. The country’s AML/CFT regime is based on several key laws, regulations, and guidelines, and has been subject to evaluations and recommendations from international organizations.