History and Legal Framework of AML in Türkiye

Türkiye's journey in addressing money laundering spans decades. The nation's initial foray into combating this financial menace dates back to the
late 1990s when it adopted its first legislative measures. Over time, Türkiye has continually refined its legal framework to align with international
standards and respond to evolving risks.
The cornerstone of Türkiye's AML efforts is Law No. 5549 on Prevention of Laundering Proceeds of Crime, enacted in 2006. This law, subsequently
amended to enhance its effectiveness, outlines the obligations of financial institutions, reporting entities, and supervisory bodies in the fight against
money laundering and terrorist financing. Additionally, the Turkish Penal Code contains provisions that criminalise money laundering activities.
The Financial Crimes Investigation Board (MASAK) is at the forefront of Türkiye's AML efforts. Established as the central authority to combat
money laundering and terrorist financing, MASAK plays a pivotal role in implementing AML regulations, conducting investigations, and sharing
intelligence with relevant stakeholders.
Türkiye's engagement with international bodies like the Financial Action Task Force (FATF) has significantly shaped its AML landscape. By
participating in mutual evaluations and adhering to FATF recommendations, Türkiye showcases its dedication to global cooperation against financial
crimes.
Key AML Laws in Türkiye
Türkiye has established a robust legal framework to combat money laundering and terrorist financing. Key AML laws include:
● Law No. 5549 on the Prevention of Laundering Proceeds of Crime: Enacted in 2006, this law forms the cornerstone of Türkiye's AML
efforts. It outlines the obligations of financial institutions, reporting entities, and supervisory bodies to prevent and detect money
laundering activities.
● Turkish Penal Code (Law No. 5237): This code includes provisions that criminalise various forms of money laundering. It addresses the
legal consequences for individuals engaged in money laundering activities.
● Banking Law (Law No. 5411): This law sets out regulations for the banking sector, including anti-money laundering provisions. It
mandates customer due diligence measures and reporting suspicious transactions to authorities.
● Law on the Regulation of Payment Services and Electronic Money Institutions (Law No. 6493):This law covers payment services and
electronic money institutions, establishing AML obligations for these entities.
● Capital Markets Law (Law No. 6362): This law encompasses regulations related to capital markets activities and includes provisions for
combating money laundering in the securities sector.
●
Government and Regulatory Role in AML
The Ministry of Finance and Treasury holds a central position in coordinating AML efforts. It oversees the Financial Crimes Investigation Board
(MASAK), the primary authority responsible for preventing and investigating money laundering and terrorist financing activities. MASAK operates
under the direct supervision of the Ministry and is empowered to develop policies, conduct research, and impose sanctions when violations occur.
Additionally, regulatory agencies like the Banking Regulation and Supervision Agency (BDDK) and the Capital Markets Board (SPK) play essential
roles in supervising financial institutions' compliance with AML regulations in their respective sectors. They ensure that banks, investment firms,
and other financial entities adhere to customer due diligence, transaction monitoring, and reporting requirements.
The government's collaboration with international bodies such as the FATF, the United Nations, and the European Union demonstrates Türkiye's
commitment to global AML efforts. By participating in mutual evaluations and adhering to international standards, Türkiye enhances its capacity to
effectively combat money laundering.

Money Laundering Risks in Türkiye

Türkiye's strategic geographical location and its position as a bridge between Europe and Asia give rise to specific money laundering risks. These
risks stem from various factors:
1. Trade-Based Money Laundering (TBML): Türkiye's role as a major trading hub makes it susceptible to TBML, where illicit funds are
concealed within legitimate trade transactions. The complex nature of international trade can make it challenging to detect these activities.
2. Informal Financial Systems: Informal remittance networks and cash-intensive businesses can be exploited for money laundering.
Transactions conducted outside the formal financial sector can evade regulatory scrutiny.
3. Real Estate Sector: The real estate market's attractiveness for investment presents a risk of using real property to legitimise illicit funds.
Transactions involving high-value properties can facilitate money laundering.
4. Corruption and Political Instability: Instances of corruption and political instability can create an environment conducive to money
laundering activities. Corrupt officials and opaque financial dealings may aid in legitimising illegal funds.
5. Virtual Currencies and Online Transactions: The increasing use of virtual currencies and online platforms provides opportunities for money
laundering. These channels can offer anonymity and complexity that facilitate illicit financial flows.
6. Cross-Border Movements: Türkiye's proximity to conflict zones and regions with weak AML enforcement can lead to cross-border
movement of illicit funds.
7. Terrorist Financing: The potential for terrorist organisations to exploit Türkiye's position for financing poses a risk. The proximity to
conflict zones and refugee flows can complicate tracking such activities.
8.
MONEY LAUNDERING
Illicit financial flows often leave developing countries via the commercial financial system. Through this system, funds are laundered to disguise
their origin. Anti-money laundering and counter-terrorist financing (AML/CFT) regimes are effective tools to prevent illicit funds from being held,
received, transferred and managed by major banks and financial centres.
Anti-money laundering and counter-terrorist financing efforts are governed by the recommendations of the Financial Action Task Force (FATF).
OECD countries’ anti-money laundering regimes have improved since the first set of Recommendations was established in 2003, but not evenly
across the board. On average, OECD countries’ compliance with central FATF Recommendations is low. The report suggests that coun- tries
strengthen their regulatory and supervision regimes, and fully implement the new 2012 Financial Action Task Force Recommendations.
TAX EVASION
Fighting international tax evasion is important because it is a major source of illicit financial flows from developing coun- tries. Sub-Saharan African
countries still mobilise less than 17% of their gross domestic product (GDP) in tax revenues. To combat tax crimes, effective exchange of
information among countries is essential.
Since 2000, the number of agreements on exchange of information between OECD countries and developing countries has steadily increased.
Although most of the agreements signed since 2005 comply with standards of the Global Forum on Transparency and Exchange of Information for
Tax Purposes, there is room for improvement. Automatic exchange of information can be a powerful tool in this respect, deterring tax evaders and
increasing the amount of taxes paid voluntarily. While automatic exchange of informa- tion is becoming more widely recognised for its effectiveness,
it remains an exception. Developing countries’ tax systems suffer from weak capacity and corruption, and therefore often lack the capacity to engage
effectively in exchange of information. This report recommends strengthening institutions and systems to prevent tax evasion.

INTERNATIONAL BRIBERY
An estimated USD 1 trillion is paid each year in bribes. Reducing bribery reduces the opportunities for illicit gains, and hence illicit financial flows.
The 1997 OECD Anti-Bribery Convention tackles the supply side: the bribe payers. The criminalization of bribe payers outside of developing
countries, as well as their effective prosecution, is central for drying up this source of illicit financial flows.

THE SCALE AND IMPACT OF ILLICIT FINANCIAL FLOWS

Every year huge sums of money are transferred out of devel- oping countries illegally. These illicit financial flows strip resources from developing
countries that could be used to finance much-needed public services, from security and justice to basic social services such as health and education,
weakening their financial systems and economic potential. While such practices occur in all countries – and are damaging everywhere – the social
and economic impact on developing countries is more severe given their smaller resource base and markets. Estimates vary greatly and are heavily
debated,1 but there is a general consensus that illicit financial flows likely exceed aid flows and investment in volume.

The most immediate impact of illicit financial flows (IFFs) is a reduction in domestic expenditure and investment, both public and private. This
means fewer hospitals and schools, fewer police officers on the street, fewer roads and bridges.

It also means fewer jobs. Furthermore, many of the activities which generate the illicit funds are criminal; and while financial crimes like money
laundering, corruption and tax evasion are damaging to all countries, the effects on developing coun- tries are particularly corrosive. For example,
corruption diverts public money from public use to private consumption. We know that in general private consumption has much lower positive
multiplier effects than public spending on social ser- vices like health and education. Proceeds of corruption or criminal activities will generally be
spent on consumption of items such as luxury vehicles, or invested in real estate, art, or precious metals (World Bank, 2006). The social impact of a
Euro spent on buying a yacht or importing champagne will be very different from that of a Euro spent on primary education.
On another front, money laundering is harmful to the financial sector: a functioning financial sector depends on a general reputation of integrity,
which money laundering undermines. In this way, money laundering can impair long-term economic growth, harming the welfare of entire
economies.

ALLIES

● United States
● Azerbaijan
● Qatar
● Russia

ENEMIES

● Greece
● Cyprus
● Armenia
● Syria
● Egypt
● Saudi Arabia
● United Arab Emirates
● France

Turkey's legal framework against illicit financial flows:

● Money Laundering Laws:

● Turkey has laws in place to prevent money laundering, a common component of illicit financial flows. The primary legislation
addressing money laundering is the "Law on the Prevention of Laundering Proceeds of Crime" (Law No. 5549).
● The legislation requires financial institutions and other entities to implement customer due diligence measures, report suspicious
transactions, and maintain records for a specified period.
● Financial Intelligence Unit (MASAK):
● Turkey has established the Financial Crimes Investigation Board (MASAK) as its Financial Intelligence Unit. MASAK plays a
crucial role in analysing financial transactions, detecting potential money laundering or illicit activities, and cooperating with
national and international authorities.
● Combating Terrorism Financing:
● Turkey has laws addressing the financing of terrorism. The legal framework aims to prevent the flow of funds to support terrorist
activities.
 ● International Cooperation:
● Turkey actively participates in international efforts to combat illicit financial flows. This includes cooperation with organisations
such as the Financial Action Task Force (FATF) and adherence to international standards and best practices.
● Anti-Corruption Legislation:
● Laws related to corruption are essential in preventing illicit financial flows. Turkey has anti-corruption measures in place, and
legal actions are taken against individuals and entities involved in corrupt practices.
● Tax Evasion Laws:
● Turkey's tax laws include provisions to combat tax evasion, which is often associated with illicit financial activities.
● Free Trade Zone Regulations:
● Turkey has implemented regulations concerning its free trade zones to prevent the misuse of these zones for illicit financial
activities.

Turkey’s place in Addressing the Use of Coercive Economic Measures by powerful nations on developing countries

● Principles of Non-Interference and Sovereignty:

● Turkey strongly upholds the principles of non-interference and national sovereignty. It advocates for the right of every nation to
determine its domestic policies without external coercion.
● Diplomacy and Dialogue:
● Turkey emphasises the necessity of resolving international disputes through peaceful dialogue and diplomatic means. It
encourages constructive engagement and negotiations to address concerns without resorting to coercive economic measures.
● Multilateralism:
● Turkey supports the multilateral approach to addressing global challenges. It believes that international issues should be handled
collectively through established institutions, such as the United Nations, to ensure fairness and representation.
● Critique of Coercive Measures:
● Turkey has criticised the use of coercive economic measures, such as sanctions and trade restrictions, against developing
countries. It argues that such measures can exacerbate economic challenges, hinder development, and have adverse humanitarian
consequences.
● Advocacy for a Just Global Order:
● Turkey advocates for a just and equitable global order where powerful nations respect the rights and sovereignty of less powerful
nations. It calls for a world order based on fairness, equality, and cooperation.
● Humanitarian Considerations:
● Turkey often emphasises the importance of considering humanitarian impacts when implementing economic measures. It
highlights the potential adverse effects on vulnerable populations and advocates for exceptions or measures to alleviate
humanitarian concerns.

Active involvement in combating illicit financial flows includes:

● United States:
● The U.S. has robust legal frameworks, including the Foreign Corrupt Practices Act (FCPA) and Anti-Money Laundering (AML)
laws.
● The U.S. government actively investigates and prosecutes cases related to money laundering and financial crimes.
● United Kingdom:
● The UK has stringent regulations, and its financial intelligence unit, the National Crime Agency (NCA), plays a key role in
combating financial crimes.
● London is a global financial hub, and the UK collaborates with international partners to address illicit financial activities.
● Switzerland:
● Switzerland has taken measures to enhance financial transparency and prevent money laundering.
● The Swiss government participates in international initiatives and has committed to implementing global standards.
● Singapore:
● Singapore is known for its strong regulatory framework and commitment to combat money laundering and terrorist financing.
● The country actively cooperates with international organisations to address illicit financial activities.
● Netherlands:
● The Netherlands has implemented measures to enhance transparency and prevent the misuse of its financial system for illicit
activities.
● It collaborates with international partners and organisations to address cross-border financial crimes.
● Canada:
● Canada has anti-money laundering regulations and initiatives to combat illicit financial flows.
● The country participates in international efforts to address money laundering and related financial crimes.
● Australia:
● Australia has implemented measures to prevent money laundering and terrorist financing.
● The Australian government actively collaborates with international partners to address global financial challenges.
● Germany:
● Germany has strong anti-money laundering laws and actively participates in international efforts to combat financial crimes.
● German authorities work to ensure compliance with global standards in the financial sector.
● South Africa:
● South Africa has taken steps to enhance its legal framework to combat money laundering and illicit financial activities.
● The country participates in regional and international initiatives to address financial crimes.
● United Arab Emirates:
● The UAE, including financial centres like Dubai and Abu Dhabi, has implemented measures to prevent money laundering and
terrorist financing.
● The country collaborates with international organisations to strengthen its financial system.
Countries with active involvement in addressing the Use of Coercive Economic Measures by powerful nations on developing countries

● China:
● China has been vocal in opposing what it perceives as coercive economic measures imposed by powerful nations. It often
advocates for a more equitable and multilateral approach to global economic issues.
● Russia:
● Russia, in various geopolitical contexts, has expressed concerns about the use of economic sanctions by powerful nations and has
called for a more balanced and just global economic order.
● India:
● India, as a significant player in the developing world, has engaged in diplomatic efforts to address economic coercion and
emphasises the importance of respecting the sovereignty of nations in economic matters.
● Non-Aligned Movement (NAM) Countries:
● NAM member countries collectively often voice concerns about economic coercion and advocate for a more inclusive and just
international economic system.
● United Nations (UN):
● The UN, through various agencies and forums, addresses economic issues and advocates for fair trade practices. General
Assembly resolutions and discussions often include considerations of economic coercion.
● African Union (AU):
● The AU, representing African nations, works towards addressing economic imbalances and promoting fair economic relations. It
may take collective stances on issues related to economic coercion.
● European Union (EU):
● The EU, through its member states, has taken positions against economic coercion and sanctions that it deems unjust. The EU
emphasises diplomacy and dialogue in conflict resolution.
● Brazil:
● Brazil, as a major player in South America, has engaged in diplomatic efforts to address economic issues and has advocated for
fair trade practice.
●
● History:
● Turkey, historically a crossroads of civilizations, saw the rise of ancient Anatolian cultures, became part of the Roman and
Byzantine Empires, and experienced the dominance of the Ottoman Empire. After World War I, under Mustafa Kemal Atatürk,
Turkey transitioned to a republic in 1923, undergoing significant modernization. Today, Turkey is a key player with a blend of
historical legacy and contemporary dynamism.
​ Government and Political Structure:
● Turkey is a unitary parliamentary republic with a President as the head of state and a Parliament serving as the legislative body.
Constitutional changes in 2018 shifted executive powers to the President, who appoints the Prime Minister. The political system
features multiple parties, and elections occur every five years. The judiciary, including the Constitutional Court, operates
independently.
​ Foreign Policy:
● Turkey's foreign policy is characterised by a balanced approach, maintaining alliances with NATO and pursuing EU accession
while actively engaging in diplomacy in the Middle East, Central Asia, and Africa. The country aims to address regional
challenges, contribute to stability, and assert its interests on the global stage through a pragmatic approach.
​ Economic Status:
● Turkey has a diverse and sizable economy, with major contributions from manufacturing, services, and agriculture. However,
economic challenges like inflation and high external debt persist. The government has implemented reforms to attract foreign
investment and enhance competitiveness, but economic performance is influenced by both domestic policies and global
conditions. Ongoing efforts aim to address structural issues and sustain growth.
​ Social and Cultural Factors:
● Turkey's social and cultural fabric blends Islamic traditions with a secular political system. The country boasts a rich history seen
in its architecture, cuisine, and arts, influenced by the Ottoman Empire and ancient civilizations. Modernization has shaped
evolving family structures, and a dynamic youth population embraces global trends while preserving cultural values. Turkish
society is known for its hospitality and a unique identity that combines Eastern and Western influences.
​ Current Affairs:
● Turkey's current affairs involve ongoing economic challenges, political discussions on constitutional changes, and active
engagement in regional issues. For the latest updates, it is recommended to refer to recent news sources.
​ International Treaties and Agreements:
● Turkey is part of international treaties and agreements, including NATO and a Customs Union with the EU. These commitments
span defence, trade, and regional cooperation, showcasing Turkey's active role in global and regional diplomacy. For the latest
details, check official sources or Turkish government channels.
​ Military and Security Policies:
● Turkey's military policies emphasise national defence, counterterrorism, and regional stability. Recent shifts aim for civilian
control, addressing security challenges and developing indigenous defence capabilities. For the latest updates, consult official
Turkish sources.
​ Human Rights Record:
● Turkey's human rights record is criticised for restrictions on expression, media freedom, and the rule of law. Concerns include
arrests of journalists and political dissidents, challenges to judicial independence, and limitations on assembly. Ongoing
monitoring is crucial, with updates from human rights organisations.
​ Environmental Policies:
● Turkey's environmental policies address pollution, deforestation, and biodiversity loss through initiatives promoting renewable
energy, improved waste management, and conservation. Ongoing efforts aim to enhance sustainability, with updates available
from official sources.
​
​ Stance on Key Global Issues:
● Turkey actively engages in global affairs as a NATO member, participating in diplomatic efforts in conflicts like Syria and
advocating for stability in the Eastern Mediterranean. Balancing relations with the EU and the U.S., Turkey faces challenges
related to human rights and regional security, influencing its global stance.
 ​ Language:
● turkish
​ National Symbols:
● Turkey's national symbol is the star and crescent, which is prominently featured on the country's flag. The red flag with a white
star and crescent has been a symbol associated with Turkey for centuries and has historical significance.
​ Economic Development Goals:
● Turkey aims for economic growth, reduced unemployment, stability, and foreign investment, focusing on business
improvements, infrastructure, and diversification in technology and renewable energy. Check official statements for updates.
​ Education System:
● Turkey's education system includes primary (eight years), secondary (four years), and higher education, with ongoing reforms
focusing on global standards, technology, and skills. Managed by the Ministry of National Education, efforts address challenges,
including regional disparities.
●
​ clarification:
● "Delegate, could you clarify your country's stance on [specific aspect of the topic]?"
● "Would the delegate elaborate on how their proposed solution addresses [specific concern]?"
​ Counterargument:
● "Delegate, how does your country respond to the argument made by [another country] about [topic]?"
● "Could the delegate explain how their proposal considers the potential challenges raised by [another delegate]?"
​ Historical Context:
● "In the historical context, how has your country addressed similar issues in the past?"
● "Delegate, how does your country's historical perspective influence its current stance on [topic]?"
​ Factual Inquiry:
● "Can the delegate provide statistics or data to support their position on [specific issue]?"
● "Delegate, what sources or evidence did your country use to form its current position?"
​ Regional Impact:
● "How does your country anticipate the proposed solution affecting the region economically?"
● "Could the delegate elaborate on the potential regional implications of their country's stance?"
​ Policy Implementation:
● "Delegate, what specific steps does your country propose for implementing the suggested policy?"
● "How does the delegate envision ensuring compliance with the proposed resolution?"
​ Humanitarian Considerations:
● "Considering the humanitarian aspect, how does your country address the well-being of affected populations?"
● "Delegate, what measures does your country propose to protect human rights in this context?"
​ Environmental Impact:
● "What environmental safeguards does your country propose in the implementation of the resolution?"
● "Delegate, how does your country consider the potential environmental impact of the proposed solution?"
​ Conflict Resolution:
● "In addressing [specific conflict], how does your country propose fostering peace and cooperation?"
● "Could the delegate elaborate on their country's role in mediating conflicts related to [topic]?"
​ Cooperation with Other Nations:
● "Delegate, is your country open to collaborating with [specific country or bloc] on finding common ground?"
● "How does the delegate envision fostering international cooperation to address [topic]?"

Honourable Chairs, Distinguished Delegates,

Good [morning/afternoon/evening],
[Delegate's Name] representing Turkey,
Turkey stands resolute in the global fight against Illicit Financial Flows (IFFs). Committed to financial transparency and international
cooperation, our nation has implemented robust regulatory measures and collaborated extensively to combat cross-border financial
crimes. Through enhanced information sharing, technological advancements, and stringent legal frameworks, Turkey is determined to
curb the detrimental impact of IFFs on global economic stability. As we convene to address this pressing issue, Turkey urges
collective action, emphasising the importance of collaboration, accountability, and innovative solutions to forge a path towards a
financially secure and just world.
Thank you.

Honourable Chairs, Distinguished Delegates,

Good [morning/afternoon/evening],
[Delegate's Name] representing Turkey,
Turkey recognizes the urgency of addressing the use of coercive economic measures by powerful nations on developing countries. As
a nation that values equity and fair global cooperation, Turkey advocates for diplomatic dialogue and mutually beneficial partnerships.
We emphasise the detrimental impact of such measures on the socio-economic development of nations and call for the promotion of
inclusive economic policies. Turkey stands ready to collaborate in crafting solutions that prioritise dialogue over coercion, fostering a
world where every nation can thrive in an atmosphere of equality and shared prosperity.
Thank you.