Financial Crime World

Fintech Regulatory Landscape in Turkey: 2022 Overview

Payment Services

The regulation on payment services and electronic money issuance in Turkey is a crucial aspect of the country’s Fintech landscape. Key developments include:

  • TR QR Code Standard: The implementation of the TR QR Code standard for QR code-based payments, enabling faster and more secure transactions.
  • Payment Services Regulation: The regulation on payment services governs the operation of payment institutions, electronic money issuers, and their activities in Turkey.

Digital Banking

Turkey has introduced digital banks and service model banking, allowing third-party institutions to offer banking services via mobile applications or online using a bank’s infrastructure. This development aims to increase financial inclusion and improve customer experience.

  • Digital Bank Licenses: The Central Bank of the Republic of Turkey (CBRT) issues licenses for digital banks, which must meet specific requirements and guidelines.
  • Service Model Banking: Third-party institutions can offer banking services via mobile applications or online using a bank’s infrastructure, subject to regulations and guidelines.

Financing Company

The regulation on financing companies in Turkey governs Fintech companies operating with the “Buy Now Pay Later” business model. Key aspects include:

  • Regulatory Framework: The CBRT regulates financing companies, including those offering installment payment plans or revolving credit.
  • Capital Requirements: Financing companies must meet capital requirements and adhere to risk management guidelines.

Crowdfunding

The regulation on crowdfunding in Turkey sets procedures and principles for equity-based and debt-based crowdfunding platforms. Key aspects include:

  • Regulatory Framework: The Capital Markets Board of Turkey (CMB) regulates crowdfunding platforms, which must comply with specific requirements.
  • Risk Disclosure: Platforms must provide clear risk disclosure to investors and ensure transparency.

Financial Courts

Turkey has established specialized courts to handle finance, Fintech, and IT-related cases. This development aims to improve the efficiency of dispute resolution processes.

  • Financial Courts: The establishment of financial courts enables faster and more efficient resolution of disputes related to finance, Fintech, and IT.
  • Expertise: Judges in these courts have specialized knowledge and expertise in finance, Fintech, and IT-related matters.

Remote Customer Acquisition

Regulations related to remote customer acquisition govern identity verification and contract processes in the digital environment. Key aspects include:

  • Identity Verification: Businesses must implement robust identity verification processes for customers.
  • Contract Processes: Contract processes must be transparent and comply with regulations.

Prevention of Money Laundering and Financing of Terrorism

Laws and regulations aimed at preventing money laundering and financing of terrorism in Turkey include the inclusion of crypto asset service providers in MASAK obligations. Key aspects include:

  • Anti-Money Laundering: Businesses must implement anti-money laundering measures to prevent illicit activities.
  • Crypto Asset Service Providers: Crypto asset service providers are subject to specific regulations and guidelines.

The Fintech regulatory landscape in Turkey is subject to change, and this overview provides a comprehensive snapshot of the current framework.