Financial Crime World

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Banking Regulations and Laws in Turkey

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Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT)

AML/CFT Requirements

Turkey has implemented AML/CFT regulations as required by the Financial Action Task Force (FATF). Key requirements include:

  • Customer Due Diligence: Banks and designated non-financial organizations must conduct due diligence on customers.
  • Enhanced Due Diligence for High-Risk Clients: Additional scrutiny is applied to high-risk clients, including ongoing monitoring and enhanced document-keeping.
  • Ongoing Monitoring: Financial institutions must continuously monitor customer transactions for potential money laundering or terrorist financing activities.

The Financial Crimes Investigation Board (MASAK) ensures regulatory oversight and enforces conformity among financial institutions in Turkey.

Depositor Protection

Overview

Depositors in Turkey are protected up to TRY400,000 by deposit insurance at each bank. The Banking Regulation and Supervision Agency (BRSA) oversees the depositor protection framework under Banking Law.

Coverage

  • TRY Currency: Deposits up to TRY400,000 are covered.
  • Foreign Currency: Foreign currency deposits are also covered, with coverage calculated based on the exchange rate determined by the Central Bank of the Republic of Turkey (CBRT).

The Scheme Funding for Depositor Protection is essential for its long-term viability and is funded from various sources, including contributions from banks.

Bank Secrecy

Regulation

The BRSA has established a Regulation on Sharing of Secret Information. Banks are required to maintain secrecy regarding their customers’ accounts and transactions.

Exceptions

However, exceptions apply when sharing information with regulatory bodies or in cases where there is a risk of money laundering or terrorist financing.

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