Financial Crime World

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Turkey’s Identity Verification Requirements: A Guide to Compliance

In Turkey, identity verification is a crucial step in the fight against money laundering and terrorist financing. As per Turkish regulations, financial institutions and businesses must verify the identities of their customers to ensure compliance with Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements.

Required Documents for Verification

The following documents are considered proof of identity in Turkey:

  • A valid passport
  • A current Turkish driving license
  • A National Identity Card
  • A Residence Permit

For address verification, the following documents can be accepted:

  • A current utility bill (gas, electricity, telephone, or mobile phone)
  • A document issued by a government department showing the end-user’s address
  • A bank statement (no older than three months) that shows the end-user’s address

Timing of Verification

Identity verification is not a one-time process in Turkey. It is required in multiple instances as per regulations. The timing and frequency of identity verification depend on the requirements of each business and its relationship with Shufti Pro.

For instance, identity verification is recommended when:

  • Onboarding new customers
  • Dealing with transaction data above certain monetary thresholds defined by Turkish regulations
  • In high-risk situations, such as dealing with individuals who may represent a higher exposure to money laundering threats

Enhanced Due Diligence Measures

In the absence of readily available regulations, clients can rely on enhanced due diligence measures for high-risk end-users. Shufti Pro offers an AML Screening service that screens an individual’s selected ID attributes (name and date of birth) against watch-lists of global regulatory authorities, foreign and domestic databases, Politically Exposed Persons (PEPs), and sanctioned individuals.

Reliance on External Services

Turkish regulations permit businesses to seek the services of a third-party provider for due diligence measures. However, the business remains liable for maintaining all compliance data and fulfilling AML and KYC obligations.

Record Retention

As per Turkish regulations, businesses are required to retain data for not less than eight years as part of their AML and KYC obligations. In cases where this information is processed, collected, and managed by a relevant third-party provider, the business must collect all necessary due diligence data from the third party without undue delay.

Conclusion

In conclusion, identity verification is a critical component of AML and KYC compliance in Turkey. By understanding the required documents, timing of verification, enhanced due diligence measures, reliance on external services, and record retention requirements, businesses can ensure compliance with Turkish regulations and maintain a robust anti-money laundering framework.