Turkey's Ministry of Finance
("Ministry") has introduced new
principles and procedures for suspending and prohibiting suspicious
transactions. These aim to prevent laundering of criminal proceeds
and terrorism financing. The rules apply to a wide range of
entities, involved in both completed and attempted transactions.
Such entities must report suspicious transactions and suspend their
execution pending a decision from the Ministry.
The Regulation on Suspension of Transaction Within the Scope of
Laundering Proceeds of Crime and Financing of Terrorism
("Regulation") was published in Official
Gazette number 29785 on 29 July 2016, entering into force on the
The following are included in the Regulation as "obliged
parties", along with branches, agencies, representatives,
commercial agents and similarly dependent units:
Non-bank institutions which are
authorized to issue bank cards or credit cards.
Authorized exchange offices,
specified in foreign exchange legislation.
Financing and factoring
Capital Markets Brokerage Houses and
portfolio management companies.
Payment service providers and
electronic money institutions.
Insurance, reinsurance and pension
Insurance and reinsurance
Financial leasing companies.
Institutions providing settlement and
custody services within capital markets legislation.
Borsa Istanbul A.Ş.
(Incorporation), limited only to its custody service for the
Precious Metals and Precious Stones Market.
PTT Corporate (Company of Post and
Telegraph Organisation) and cargo companies.
Assets management companies.
Dealers of precious metals, stones
Directorate General of the Turkish
Mint, limited only to its gold coin minting activities.
Precious metal intermediaries.
Those who buy and sell immovable
objects for trading purposes, and intermediaries for these
Dealers of any kind of sea, air and
land transportation vehicles, including construction machines.
Dealers and auctioneers of historical
artefacts, antiques and art works.
Those who operate in the field of
lotteries and betting, including the Turkish National Lottery
Administration, Turkish Jockey Club and Football Pools Organization
Freelance lawyers, limited only to
functions within the scope of Article 35(2) of Law No. 1136 on
Lawyers. This includes trading of immovable objects, as well as
establishing, managing and transferring companies, foundations and
Certified general accountants,
certified public accountants and sworn-in certified public
accountants operating without being attached to an employer.
Obliged parties must notify the Turkish Financial Crimes
Investigation Board ("Board") if a
supportive document or a serious indication exists showing that a
suspicious transaction has been performed or attempted.
The Board must provide a decision to the obliged party within
seven working days of receiving the notification. The obliged party
must refrain from performing the relevant transaction until
receiving the Board's decision.
Under the Regulation, the following are indications of
Checks in various database or other
sources indicate the person(s) carrying out the transaction is or
might be connected with crimes.
Risky situations, giving the
impression that it would be difficult or impossible for Turkish
authorities to seize proceeds of crime, or funds related to
The Board will also advise obliged parties (on the
Ministry's behalf) about suspicious transactions which have
been detected ex officio, or due to notification received from
foreign institutions. In these circumstances, the obliged party
must not perform the respective transaction for seven working days
from the date of service.
Decisions will be served electronically to obliged parties which
have an electronic notification account. However, for parties who
do not have such an account, notification will be made through
technical communication devices like fax, e-mail or web
Please see this link for the Regulation (only available
Information first published in the MA | Gazette, a fortnightly legal
update newsletter produced by Moroğlu Arseven.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Even though the EU's Fourth Anti-Money Laundering Directive (EU 849/2015) on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing' has only recently hatched from its legislative egg, . . .
Turkey has updated its project-based investment incentives scheme, providing financial support for innovative, technology-oriented, R&D focused, high value-added projects, which assist in reducing foreign dependency.
Turkeys judicial system has undergone many reforms over the past decade, such as a new Criminal Code, Commercial Code, Code of Obligations and Civil Procedure Code. Until June 2012, the most prominent change in the judicial system was the new Civil Procedure Code (the "CPC").
Some comments from our readers The articles are extremely timely and highly applicable I often find critical information not available elsewhere As in-house counsel, Mondaqs service is of great value
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think youve read our Disclaimer).