Name
Global FinTech Guide
Country _ Name
Turkey
SectionTitle
KYC requirements
Body
The know your customer or know your client (KYC) guidelines and regulations for financial services require that professionals try to verify the identity, suitability, and risks involved with maintaining a business relationship.

Legal affairs

National regulatory framework regarding AML and effective date of the regulations

Anti-money laundering is regulated by several different laws and regulations under Turkish law, the most important of which are:

  • the Turkish Criminal Law No. 5237 (“TCL”);
  • the Law on the Prevention of Laundering of Crime Revenues No. 5549 (the “AML Law”);
  • the Law on the Prevention of Money Laundering No. 4208 (although many of its provisions have been annulled);
  • the Law on the Prevention of Terrorist Financing No. 6415;
  • the Banking Law No. 5411;
  • the Turkish Misdemeanour Law No. 5326;
  • the Regulation on Measures to Prevent Money Laundering and Terrorist Financing;
  • the Regulation on the Compliance Programme with the Obligations Regarding the Prevention of Laundering of Crime Revenues and Terrorist Financing;
  • the Regulation on Investigation of Money Laundering Offence;
  • General Communiqué for Reporting Suspicious Transactions Regarding Terrorist Financing;
  • General Communiques No. 5, No. 7, No. 8, and No. 13 of the Financial Crimes Investigation Board (“MASAK”).
  • The CML
  • The Communiqué on Principles of Establishment And Activities Of Investment Firms

National regulator or relevant authority for AML controls

In the event that there is any information or suspicion that the assets subject to transactions made or attempted to be made before or through obliged parties are obtained illegally or used for illegal purposes, a reporting obligation is prescribed under the AML Law and the Regulation on the Prevention of Laundering of Crime Revenues and the Prevention of Money Laundering and Terrorist Financing for responsible institutions, such as banks and financial institutions, to detect and report any suspicious transactions to MASAK. In addition, responsible institutions must notify MASAK when a transaction exceeds certain amounts prescribed by law. MASAK has the power to request and access all relevant information. 

Money laundering is also described as a crime under article 282 of the TCL and is subject to criminal prosecution. According to article 160 of the Law of Criminal Procedure No. 5271, as soon as a public prosecutor receives notice of a situation that reasonably indicates that a crime has been committed, by denunciation or any other way, he or she must immediately investigate the truth of the matter to decide whether to file a public lawsuit. The public prosecutor may conduct any kind of investigation directly or through the judicial law enforcement officers under his or her command. The public prosecutor may request information from all public offices to reach a conclusion. The law enforcement authorities that assist the public prosecutors in investigations are the police, the Directorate of Customs Enforcement, the Gendarmerie General Command, and the Coast Guard Command.

Customer Due Diligence

Conduct of a typical KYC identification process

Traditionally, identification is made by face-to-face verification of the identity through an ID card, passport, or other accepted documents. 

In the remote identification, however, the obliged parties may use remote identification methods for the purpose of verifying the identity of the customer in the establishment of a permanent business relationship, if the legislation pertaining to their main field of activity permits

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