Financial Crime World

Anti-Money Laundering (AML) Requirements in Turkey

Government Agencies/Competent Authorities

In Turkey, the following government agencies are responsible for implementing Anti-Money Laundering (AML) regulations:

  • Turkish Central Bank (TCMB): The TCMB is the primary agency responsible for implementing AML regulations.
  • Financial Crimes Investigation Commission: This commission investigates and prosecutes financial crimes related to money laundering.
  • Public Prosecutor’s Office: The Public Prosecutor’s Office plays a crucial role in enforcing AML laws and regulations.
  • Ministry of Treasury and Finance: The Ministry of Treasury and Finance oversees the implementation of AML regulations.

Role of Self-Regulatory Organizations (SROs)

Self-regulatory organizations, such as:

  • Union of Chambers and Commodity Exchanges of Turkey (TOBB): TOBB plays a crucial role in promoting AML compliance among its members.
  • Other SROs also contribute to the enforcement of AML regulations.

Types of Sanctions

In Turkey, the following sanctions can be imposed for non-compliance with AML regulations:

Monetary Fines

  • The Turkish Penal Code sets a maximum fine of TRY 10 million (approximately USD 570,000) for AML offenses.
  • Monetary fines are typically imposed for less serious offenses.

Imprisonment

  • Up to 5 years’ imprisonment can be imposed for serious AML offenses, such as money laundering or facilitating criminal activity.
  • Imprisonment is typically reserved for more serious offenses.

Revocation of Licenses

  • Businesses found guilty of AML violations may have their licenses revoked.
  • Revocation of licenses is a severe penalty that can result in significant financial losses.

Statute of Limitations

The statute of limitations for bringing enforcement actions against individuals and legal entities in Turkey typically ranges from 5 to 10 years from the date of the offense. However, this timeframe may vary depending on the specific circumstances and types of offenses committed.

Maximum Penalties

In addition to monetary fines and imprisonment, maximum penalties for failure to comply with regulatory/administrative AML requirements include:

  • Monetary Fines: Up to TRY 10 million (approximately USD 570,000) as a maximum fine.
  • Imprisonment: Up to 5 years’ imprisonment for serious offenses.

Statute of Limitations and Types of Sanctions

The statute of limitations and types of sanctions that can be imposed on individuals and legal entities besides monetary fines and penalties typically range from 5 to 10 years from the date of the offense. However, this timeframe may vary depending on the specific circumstances and types of offenses committed.

In Turkey, AML regulations are enforced by a combination of government agencies and self-regulatory organizations. Monetary fines, imprisonment, and revocation of licenses are some of the possible sanctions for non-compliance with AML regulations.