Financial Crime World

Turkey Tightens Money Laundering Prevention Measures, Expands Scope to Non-Financial Sectors

In an effort to strengthen its anti-money laundering (AML) regime, Turkey’s Financial Crimes Investigation Board (MASAK) has introduced new regulations aimed at preventing financial crimes and protecting economic security. These updated regulations come in response to the country’s Mutual Evaluation Report by the Financial Action Task Force (FATF), which directed Turkey to undertake a comprehensive review of its AML/CFT measures.

Expanded Scope for Non-Financial Sectors

Under the revised regulations, MASAK has expanded its scope to include certain non-financial jobs and professions, such as:

  • Lawyers
  • Accountants
  • Auditors

These individuals will be required to implement robust compliance programs, including:

  • Training
  • Risk assessment
  • Internal controls

to detect and prevent suspicious transactions.

Stricter Customer Identification Requirements

The new regulations also introduce stricter customer identification requirements for:

  • Transactions above TL 75,000 (approximately $10,500 USD)
  • Electronic transfers exceeding TL 7,500 (approximately $1,000 USD)

Additionally, the threshold for identifying ultimate beneficial ownership has been increased to 25% share of a legal person’s partners.

MASAK Audits and Consequences

MASAK will conduct regular audits to ensure compliance with the new regulations. Failure to comply may result in:

  • Administrative fines ranging from TL 500,000 (approximately $67,000 USD) to twice the initial fine
  • License revocation

To navigate these complex regulations, financial institutions and non-financial entities can rely on Sanction Scanner’s AML Compliance Solutions, which provide:

  • Real-time monitoring capabilities
  • Reporting capabilities to detect and prevent financial crimes

With our expert guidance and AI-powered technology, businesses can ensure compliance with local and global regulations, protect their reputation, and minimize the risk of fines and penalties.

Conclusion

The new regulations are a significant step forward in Turkey’s efforts to combat money laundering and terrorist financing. As the country continues to strengthen its AML/CFT regime, it is essential for financial institutions and non-financial entities to stay informed and adapt to these changes to maintain their reputation and avoid costly consequences.