Bank Secrecy Regulations in Turkey

Overview of Bank Secrecy Requirements

The Banking Regulation and Supervision Agency (BRSA) has established a comprehensive framework for bank secrecy regulations in Turkey, which is part of the country’s broader anti-money laundering (AML) and countering the financing of terrorism (CFT) efforts.

Key Points

• Bank Secrecy Requirements: The BRSA Regulation on Sharing of Secret Information governs the disclosure of confidential information by banks and other financial institutions.
• Confidentiality Obligations: Banks in Turkey have confidentiality obligations, which prohibit them from disclosing customer information without consent or as required by law.
• Disclosure Requirements: The BRSA requires banks to disclose certain information to regulatory authorities, including the Central Bank of the Republic of Turkey (CBRT) and the Financial Crimes Investigation Board (MASAK).
• Sanctions for Non-Compliance: Banks that fail to comply with bank secrecy regulations may face sanctions, including financial penalties and restrictions on banking activities.
• Depositor Protection Regime: The BRSA oversees the depositor protection framework in Turkey, which safeguards depositors’ rights and ensures the stability of the banking system.
• Deposit Insurance: Deposit insurance in Turkey is provided by the Savings Deposit Insurance Fund (SDIF), which protects deposits up to TRY400,000 per depositor, per bank.

A Balance Between Confidentiality and Oversight

The bank secrecy regulations in Turkey aim to strike a balance between protecting customer confidentiality and ensuring compliance with AML/CFT requirements and regulatory oversight. By establishing clear guidelines and disclosure requirements, the BRSA ensures that banks maintain confidentiality while also cooperating with regulatory authorities to prevent financial crimes.