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Turkey Takes Proactive Measures to Combat Money Laundering and Terrorist Financing

In a bid to combat money laundering and terrorist financing, Turkey has implemented stringent Anti-Money Laundering (AML) laws and regulations that align with global standards. The country’s strategic geographical location makes it susceptible to financial crimes, but its efforts to counter these risks have earned international recognition.

A Brief History of AML Efforts in Turkey

Turkey’s AML journey dates back to the late 1990s when it adopted its first legislative measures. Since then, the nation has continually refined its legal framework to respond to evolving risks and align with international standards. The cornerstone of Turkey’s AML efforts is Law No. 5549 on Prevention of Laundering Proceeds of Crime, enacted in 2006.

Implementing AML Regulations

The Financial Crimes Investigation Board (MASAK) plays a pivotal role in implementing AML regulations, conducting investigations, and sharing intelligence with relevant stakeholders. Turkey’s engagement with international bodies like the Financial Action Task Force (FATF) has significantly shaped its AML landscape.

Key AML Laws in Turkey

  • Law No. 5549 on Prevention of Laundering Proceeds of Crime
  • Turkish Penal Code
  • Banking Law
  • Law on Regulation of Payment Services and Electronic Money Institutions
  • Capital Markets Law

These laws outline the obligations of financial institutions, reporting entities, and supervisory bodies to prevent and detect money laundering activities.

International Collaboration

The government’s collaboration with international bodies demonstrates Turkey’s commitment to global AML efforts. Regulatory agencies like the Banking Regulation and Supervision Agency (BDDK) and the Capital Markets Board (SPK) play essential roles in supervising financial institutions’ compliance with AML regulations.

Specific Money Laundering Risks

Turkey’s strategic geographical location and its position as a bridge between Europe and Asia give rise to specific money laundering risks, including:

  • Trade-based money laundering
  • Informal financial systems
  • Real estate sector
  • Corruption and political instability
  • Virtual currencies and online transactions
  • Cross-border movements
  • Terrorist financing

By implementing robust AML measures and collaborating with international bodies, Turkey is committed to combating money laundering and terrorist financing.