Financial Crime World

Financial Crime Definition in Turkey: A Growing Concern

Turkey is grappling with the issue of financial crime, which poses a significant threat to its economic system and order. Experts define financial crime as illegal activities committed by professionals without using violence, aimed at making a profit or benefiting from illicit activities.

Definition of Financial Crime in Turkey

The definition of financial crime in Turkey is broader than just white-collar crimes, encompassing various types of fraud, corruption, and money laundering. These crimes can have significant economic impacts both domestically and internationally, leading to the loss of state income and revenue.

White-Collar Crime vs Financial Crime

While white-collar crime refers to fraudulent activities committed by individuals of high status, financial crime is a specific type of offense that targets the economy. Not all white-collar crimes are necessarily financial in nature, but all financial crimes can have significant economic consequences.

Combating Financial Crime in Turkey

To combat financial crime, Turkey has taken steps to strengthen its legal and regulatory framework. In 1991, the country joined the Financial Action Task Force (FATF), an international organization aimed at combating money laundering and terrorist financing.

As a result, Turkey introduced national legislative reforms and implemented preventive measures such as:

  • Customer due diligence
  • Record keeping
  • Suspicion transaction reporting

The country also established the Financial Crimes Investigation Board (MASAK) in 1996 to investigate and prosecute financial crimes.

Penalties for Financial Crime

The penalties for financial crime in Turkey vary depending on the type of offense. Most financial crimes are subject to imprisonment, with sentences ranging from a few years to life imprisonment. Legal entities that benefit from financial crimes can also be subject to:

  • Administrative fines
  • License revocation
  • Confiscation of assets

Conclusion

Financial crime is a significant concern in Turkey, affecting the country’s economic order and income. While the government has taken steps to combat these crimes through legislative reforms and preventive measures, more needs to be done to effectively deter and punish financial criminals, protect the economy, and prevent illicit activities from undermining national security.