Financial Crime World

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Money Laundering in Turkey: What You Need to Know

Turkey has been taking proactive measures to combat money laundering, recognizing the significant risks posed by this financial crime. Its strategic location makes it vulnerable to financial crimes, and as a result, the country has implemented stringent anti-money laundering (AML) laws and regulations aligned with global standards.

History of AML Efforts in Turkey

Turkey’s history of addressing money laundering dates back to the late 1990s when it first adopted legislative measures. Over time, Turkey has refined its legal framework to align with international standards and respond to evolving risks.

Key Legislation

At the forefront of Turkey’s AML efforts is Law No. 5549 on Prevention of Laundering Proceeds of Crime, enacted in 2006. This law outlines the obligations of financial institutions, reporting entities, and supervisory bodies in preventing and detecting money laundering activities. The Turkish Penal Code also contains provisions criminalizing money laundering.

Implementing AML Regulations

The Financial Crimes Investigation Board (MASAK) plays a crucial role in implementing AML regulations, conducting investigations, and sharing intelligence with relevant stakeholders.

International Cooperation

Turkey’s engagement with international bodies such as the Financial Action Task Force (FATF) has significantly shaped its AML landscape. By participating in mutual evaluations and adhering to FATF recommendations, Turkey demonstrates its commitment to global cooperation against financial crimes.

Key AML Laws in Turkey

  • Law No. 5549 on Prevention of Laundering Proceeds of Crime
  • Turkish Penal Code (Law No. 5237)
  • Banking Law (Law No. 5411)
  • Law on the Regulation of Payment Services and Electronic Money Institutions (Law No. 6493)
  • Capital Markets Law (Law No. 6362)

Government Coordination

The government plays a central role in coordinating AML efforts, with the Ministry of Finance and Treasury overseeing the Financial Crimes Investigation Board. Regulatory agencies such as the Banking Regulation and Supervision Agency (BDDK) and the Capital Markets Board (SPK) also play essential roles in supervising financial institutions’ compliance with AML regulations.

Money Laundering Risks in Turkey

Turkey’s strategic location and position as a bridge between Europe and Asia give rise to specific money laundering risks, including:

  • Trade-Based Money Laundering (TBML)
  • Informal Financial Systems
  • Real Estate Sector
  • Corruption and Political Instability
  • Virtual Currencies and Online Transactions
  • Cross-Border Movements
  • Terrorist Financing

Combating Risks with AML Compliance Software

To combat these risks, businesses operating in Turkey can discover the power of Sanction Scanner’s AML compliance software designed specifically for the country. With a deep understanding of Turkey’s regulatory landscape, Sanction Scanner offers tailored solutions that streamline compliance for businesses operating here.