Financial Crime World

Turkey Toughens Stance on Financial Crimes: What You Need to Know

In an effort to combat money laundering and terrorist financing, Turkey has implemented a range of laws and regulations aimed at preventing these financial crimes. But what exactly does the legislation cover, and who is affected?

Key Provisions

  • Money Laundering: Engaging in money laundering by transferring abroad or processing proceeds from crime with the intention of concealing their source or giving them a legitimate appearance is a criminal offense (Article 282 of the Turkish Criminal Code).
  • Terrorism Financing: The Law on the Prevention of Terrorism Financing defines terrorism financing as an act that supports or funds terrorist activities.
  • National Terrorist Asset Freezing Mechanism: This mechanism has extra-territorial reach, allowing Turkey to freeze assets of individuals and entities designated by the United Nations Security Council (UNSC) and respond to freezing requests from foreign countries.

Obligated Parties

  • Financial Services Sectors: Banking, insurance, capital markets, and other financial services
  • Real Estate Agents: Lawyers, notaries

These obligated parties are required to comply with a range of anti-money laundering (AML) and counter-terrorism financing (CFT) regulations, including:

  • Customer Identification
  • Suspicious Transaction Reporting
  • Assignment of a Compliance Officer
  • Establishment of Internal Audit and Control Systems

Consequences of Non-Compliance

Failure to comply with these regulations can result in severe penalties, including imprisonment and administrative fines.

Enforcement Agency

The Financial Crimes Investigation Board (MASAK), under the Ministry of Treasury and Finance, is responsible for enforcing these laws and regulations. MASAK provides guidance and support to obligated parties and investigates suspected financial crimes.

Recent Developments

Turkey has strengthened its AML/CFT regime in recent years, introducing new regulations and penalties for non-compliance. As the country continues to crack down on financial crime, it’s essential for businesses and individuals operating in Turkey to understand their obligations and take steps to ensure compliance.

Contact Information

  • MASAK (Financial Crimes Investigation Board)
    • Address: T.C. Hazine ve Maliye Bakanlığı, Devlet Mahallesi Dikmen Caddesi No: 12 06420 Çankaya Ankara
    • Phone: +90 312 415 2900