Financial Crime World

Turkey Tightens Grip on Anti-Money Laundering Regulations to Combat Financial Crimes

In its relentless pursuit to combat financial crimes, Turkey has taken a proactive stance in implementing stringent anti-money laundering (AML) regulations. The country’s strategic geographical location makes it vulnerable to money laundering and terrorist financing activities, prompting authorities to collaborate with international bodies such as the Financial Action Task Force (FATF), the United Nations, and the European Union.

Turkey’s AML Journey

Turkey’s AML journey dates back to the late 1990s, with the adoption of its first legislative measures. Since then, the country has continually refined its legal framework to align with international standards and respond to evolving risks.

Key Regulations

At the forefront of Turkey’s AML efforts is Law No. 5549 on Prevention of Laundering Proceeds of Crime, enacted in 2006. This law outlines the obligations of financial institutions, reporting entities, and supervisory bodies in preventing and detecting money laundering activities. The Turkish Penal Code also contains provisions that criminalize money laundering activities.

Financial Crimes Investigation Board (MASAK)

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 FATF has significantly shaped its AML landscape, demonstrating the country’s commitment to global cooperation against financial crimes.

Turkey has established a robust legal framework to combat money laundering and terrorist financing, comprising key laws such as:

  • Law No. 5549 on Prevention of Laundering Proceeds of Crime
  • Turkish Penal Code (Law No. 5237)
  • Banking Law (Law No. 5411)
  • Law on the Regulation of Payment Services and Electronic Money Institutions (Law No. 6493)
  • Capital Markets Law (Law No. 6362)

Regulatory Agencies

The Ministry of Finance and Treasury oversees the Financial Crimes Investigation Board, ensuring effective coordination and supervision of AML efforts. Regulatory agencies like the Banking Regulation and Supervision Agency (BDDK) and the Capital Markets Board (SPK) also play crucial roles in supervising financial institutions’ compliance with AML regulations.

Money Laundering Risks

Turkey’s strategic geographical location poses specific money laundering risks, including:

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

Effective AML Solutions

To combat these challenges, Turkey requires effective AML solutions that streamline compliance for businesses operating in the country. Sanction Scanner’s AML compliance software is specifically designed for Turkey, offering tailored solutions that help businesses navigate the complex regulatory landscape.

Request a Demo

With a deep understanding of Turkey’s regulatory environment, Sanction Scanner provides cutting-edge technology to support businesses in meeting their AML obligations. Contact us today to learn more about our AML solutions and request a demo.