Financial Crime World

Title: Turkey’s Financial Regulatory Compliance Landscape: An Overview

I. Introduction

Istanbul, Turkey - Amidst increasing global focus on financial regulatory compliance, Turkey’s regulatory scene continues to evolve. This article provides an overview of the current financial regulatory landscape in Turkey.

II. Overview of Financial Regulatory Bodies

A. Turkish Central Bank (TCB)

  • Established in 1931
  • Responsible for bank regulation, monetary policy, and exchange-rate policy
  • Oversees payment and clearing systems

B. Banking Regulation and Supervision Agency (BDDK)

  • Established in 2012
  • Improves the TCB’s efficiency in supervising and monitoring banks

C. Capital Markets Board (SPK)

  • Plays essential roles in regulating the capital markets

D. Undersecretariat of the Treasury

  • Contributes to the financial regulation landscape

III. Significant Regulatory Developments

A. Banking Law No. 5411 (2006)

  • Introduced new regulations concerning licensing, corporate governance, prudential requirements, and resolution mechanisms

B. Capital Markets Law No. 6749 and Capital Markets and Crisis Management Regulation No. 3569 (2020)

  • Enhance transparency and governance in the capital markets
  • Establish a resolution mechanism for dealing with distressed securities

IV. Ongoing Regulatory Changes and Institutions

A. The Financial Markets Institute

  • Established in January 2021
  • Provides training, research, and technical assistance on financial markets and instruments

B. New Financial Regulatory Agency for Fintech

  • Planned to be established within the Ministry of Treasury and Finance
  • Focuses on regulating and supervising emerging financial technologies

V. Conclusion

Adhering to Turkey’s financial regulatory compliance landscape poses significant challenges for local and international players. The Turkish authorities continue to review and update regulations, making it crucial for financial institutions to stay informed and adapt to these changes. The new fintech regulatory agency is an essential development for safeguarding investor protection and fostering innovation within the Turkish financial sector.