Money Laundering

Money laundering is concealing the source of assets derived from an offence and giving them a legitimate appearance (Turkish Criminal Code Art. 282). The penalty is three to seven years’ imprisonment and a criminal fine.

Elements of the Offence

• Predicate offence: The assets must derive from an offence carrying a minimum penalty of six months’ imprisonment or more.
• Laundering acts: Transferring them abroad, or subjecting them to transactions to conceal their illicit source or give the impression they were lawfully acquired.
• Knowing acceptance: Persons who, without participating in the offence, knowingly purchase, accept, possess or use laundered assets are also punished.
• Aggravating factors: Commission by a public official, by a professional in the course of their profession or within an organised group increases the penalty.

From the Company’s Perspective

• If laundering is committed for a company’s benefit, security measures and an administrative fine may be imposed on the company.
• Company accounts, sham transactions or fictitious business relationships may be used as tools for laundering; fake invoices are a common tool.

MASAK Obligations

Obliged entities under Law No. 5549 on Prevention of Laundering Proceeds of Crime (banks, payment institutions, crypto asset service providers, insurers, notaries, real estate and precious metals dealers and others) must:

• Know their customers and beneficial owners,
• Report suspicious transactions to the Financial Crimes Investigation Board (MASAK),
• Keep records and establish a compliance programme.

Breach of these obligations leads to administrative fines and in some cases is also an offence. See Crypto Asset Service Provider.

Effective Repentance

A person who, before prosecution begins, informs the authorities so as to enable the seizure of the laundered assets is not punished; see Effective Repentance. Laundering of illegal betting proceeds is common in practice.