Compliance Guidelines:

Regulatory Bodies in Turkey

In Turkey, the primary regulatory bodies responsible for anti-money laundering (AML) and combating the financing of terrorism (CFT) are:

MASAK (Financial Crimes Investigation Board)

The primary agency in Turkey overseeing AML/CFT activities. It operates under the Ministry of Treasury and Finance and is responsible for collecting and analyzing suspicious transaction reports, conducting investigations related to money laundering and terrorism financing, and collaborating with international entities.

Banking Regulation and Supervision Agency (BRSA)

While its main focus is the supervision and regulation of banks and other financial institutions, the BRSA also has responsibilities in ensuring these entities comply with AML/CFT regulations.

LAW NO: 5549 AML Law on Prevention of Laundering Proceeds of Crime

Customer Due Diligence

• Identification of Transaction Parties: Obligated parties should identify individuals involved in, and benefiting from, transactions before they occur.
• Documentation and Requirements: The Ministry has the authority to specify required documents for customer identification, monetary limits, and other related principles/procedures.

Suspicious Transaction Reporting

• Transactions suspected to involve assets gained or used illegally must be reported to MASAK by the obliged parties.
• Obligated parties can’t disclose report details to anyone, including transaction parties, except during legal proceedings or to authorized supervisors.
• Specific activities and reporting principles/procedures are determined by regulation.

Training and Control Measures

• Necessary steps, such as officer appointments, training, and risk management, must be taken. The Ministry will determine the involved parties and their implementation principles based on business size/volume.
• To ensure compliance, affiliated institutions may share customer, account, and transaction details. Special laws can’t be used to avoid sharing.

Periodic Reporting

• Transactions exceeding a certain value set by the Ministry must be reported by the obliged parties.
• The Ministry determines types of transactions, reporting procedures, frequency, and exemptions.
• Public and certain other institutions might be required to report periodically.

Provision of Information and Documents

• Upon request, all entities, including public institutions, must provide accurate information and records to MASAK or its examiners.
• Entities can’t avoid sharing by citing special laws, except for the right to defense.

Record Retention and Submission

• Obligated parties must retain related documents, records, and identification for eight years and provide them upon request.

Access System Establishment

• MASAK may have access to data systems of certain entities, which keep records related to economic activities and more, based on mutual agreement on principles and procedures.
• This doesn’t apply to public economic enterprises and banks with public capital, except the Central Bank of Republic of Türkiye.

Electronic Notification

• Electronic notifications can be made under this Law and the Law No.6415 on Prevention of the Financing of Terrorism.
• MASAK can set up or use technical infrastructure for electronic notifications and determine related procedures and principles.

Protection of Obliged Parties

• Entities fulfilling their obligations under this Law won’t face civil or criminal liabilities.
• Information about those reporting suspicious activities will remain confidential, with courts taking necessary measures to ensure their protection.

Oversight Mechanism

• Supervision of obligations as set by this Law and associated legislations is conducted by examiners mentioned in Article 2.
• MASAK holds the power to request supervision of an obliged party either for a specific case or as part of a supervision program. The requested unit is responsible for executing this supervision. Examiners are appointed based on MASAK’s request, the proposal from the head of the related unit, and approval from the concerned Minister.
• Examiners have the authority to request all types of information, documents, and legal books from various entities. They can examine documents, take records, and acquire information from relevant authorities either verbally or in written format. They can also exercise powers granted by other laws.
• Any violations found during the supervision must be reported to MASAK by the examiners.

REGULATION ON MEASURES REGARDING PREVENTION OF LAUNDERING PROCEEDS OF CRIME AND FINANCING OF TERRORISM

Measures for Foreign Correspondent Relationships

• Financial institutions must:
  • Use public data to verify if the respondent financial institution faced any money laundering or terrorist financing probes or penalties, and gather information about its business, reputation, and supervisory adequacy.
  • Review the respondent’s anti-money laundering and terrorist financing protocols, ensuring they are effective.
  • Secure senior manager approval before initiating new correspondent ties.
  • Clearly outline mutual responsibilities in a contract, consistent with Chapter 3 of this Regulation.
  • For relationships using payable-through accounts, ensure the correspondent institution adheres to Chapter 3 guidelines and can provide customer ID details upon request.

• Financial institutions are prohibited from forming ties with shell banks or institutions that might let their accounts be used by such banks.

References

1. T.C. Hazine ve Maliye Bakanlığı
2. Turkey Gazette