Financial Crime World

Turkey’s Financial Crime: A Growing Concern

Financial crime, also known as economic crime, is a pervasive issue that affects Turkey’s economic system and order. It is typically committed without using violence, often by perpetrators who abuse their professional positions or titles for monetary gain. The scope of financial crime can be multinational, with proceeds often used for illicit purposes that threaten the international community.

Types of Financial Crime

  • Embezzlement
  • Abuse of trust
  • Forgery
  • Counterfeiting
  • Bribery
  • Fraud
  • Money laundering
  • Usury
  • Terrorist financing
  • Tax offenses
  • Violations of capital markets regulations

These crimes can be committed by anyone, including white-collar workers who earn higher salaries for their skilled work.

Combating Financial Crime in Turkey

Turkey has taken steps to combat financial crime, becoming a member of the Financial Action Task Force (FATF) in 1991. The country introduced national legislative and regulatory reforms, implemented preventive measures such as:

  • Customer due diligence
  • Record keeping
  • Established the Financial Crimes Investigation Board (MASAK)

Functions of MASAK

  • Conducting research
  • Developing methods to prevent and expose money laundering
  • Gathering and analyzing data
  • Initiating investigations or examinations

If MASAK finds evidence of money laundering, it reports the case to the Public Prosecutor’s Office.

Penalties for Financial Crime

Penalties for financial crime vary depending on the type of offense. Most financial crimes fall under the jurisdiction of the courts of aggravated crimes, and sentences can be severe, including:

  • Imprisonment
  • Administrative fines
  • License revocation
  • Confiscation of assets

Legal entities that benefit from financial crime can face administrative fines, license revocation, and confiscation of assets.

Turkey has also implemented measures to discipline legal entities engaged in criminal activities, emphasizing their responsibilities and duties. The country’s laws stipulate that while criminal liability is personal and cannot be attributed to legal entities, they can still be issued with administrative fines to deter them from engaging in such activities.

Conclusion

Financial crime is a significant issue in Turkey that affects the country’s economic order and international reputation. To combat this problem, it is essential to implement effective preventive measures, conduct thorough investigations, and impose severe penalties on perpetrators.