The other important element of anti-money laundering measures is suspicious transaction reports. ("STR") The suspicious transaction occurs if there is any suspicion on the assets subject to the transaction that they have been obtained illegally or used for illegal purposes. Besides, transactions, where obliged parties cannot identify the customers or receive sufficient information about the purpose of the business relationship can be considered suspicious transactions. As per the anti-money laundering legislation, the obliged parties shall report all suspicious transactions, regardless of their amount, to MASAK.
As per the AML Law, MASAK imposes an administrative fine of 50.000 TRY (approx. 6,150 USD)12 on obliged parties who violate the STR obligation. If the obliged party is a bank, financing company, factoring company, lender, financial leasing company, insurance, a reinsurance company, pension company, capital market institution, exchange bureaus, payment, and electronic money institution, the administrative fine is doubled. (the amount cannot be less than 5% of the transaction amount) This administrative fine can be applied to (i) the obliged party, (ii) the employee or employees who performed the transaction, and (iii) the managers who have a role and responsibility in the finalization of the transaction.
In accordance with the AML Law, if the obliged parties violate the obligations of establishing training, internal audit, control, and risk management systems or appointment of the compliance officer, the authorities grant obliged parties with a period of at least thirty days to by officially serving a written notice. At the end of this period, if the obliged parties do not complete their deficiencies, an administrative fine of 500,000 TRY (approx. 61,500 USD)17 will be imposed.
After the notification of this administrative fine, the Ministry gives a new period, not less than sixty days. If the obliged parties do not complete their deficiencies at the end of this period, an additional 1,000,000 TRY (approx. 123,000 USD)18 administrative fine will be imposed. If the deficiencies are not completed within thirty days from the notification of the second administrative fine, the situation will be notified to the relevant institution to suspend or restrict the activities of the obliged party for a certain period or to cancel their activity permit certificate.
Following the Measures Regulations, MASAK and Supervision officers request information and documents in writing, except urgent cases, and give an appropriate period of not less than seven days to the obliged parties for providing the requested information and documents. Moreover, another obligation of the responsible parties is to periodically and continuously provide information about transactions exceeding the amount determined by the Ministry to MASAK.
6. Limited to the activities of buying and selling of property, establishment and management of companies, charitable foundations and associations, and sales of the foregoing entities.
The AML Law entered into force on October 18th, 2006 and was prepared based on international standards for combatting money laundering. It contains provisions determining the obliged parties, their obligations, and sanctions for non-compliance with these obligations. Also, the AML Law foresees the same measures to prevent both money laundering and financing.
Another obligation stipulated by the Measures Regulation is to provide information and documents regarding customers, transactions, and the obliged parties' activities. This obligation stipulates that not only obliged parties but also all organizations, institutions, and persons (both private and public) are obliged to provide the information and documents requested by MASAK and supervision officers.
Turkey has strict laws against the use, possession or trafficking of illegal drugs. If you are convicted of any of these offences, you can expect to receive a heavy fine or a prison sentence of 4 to 24 years.
The term "money laundering", according to its general definition, expresses the process by which proceeds from criminal activity are disguised to conceal their illicit origins1. The combat against money laundering is an issue with both national and international aspects. In this article, we will examine the anti-money laundering legislation in Turkey.