The third section of the Regulation on Measures for the Prevention of Laundering Proceeds of Crime and Financing of Terrorism (hereinafter the Regulation), published in Official Gazette No. 26751 dated 9/1/2008 and in force since 1/4/2008, sets out the principles on customer identification, which this communiqué addresses.
Article 26 of the Regulation states that the (Amended phrase: OG-26/2/2021-31407) Ministry of Treasury and Finance may allow obliged parties to take simpler customer identification measures, and that the (Amended phrase: OG-26/2/2021-31407) Ministry of Treasury and Finance is authorized to determine the measures and transaction types to which this article may be applied.
The subject of this Communiqué is the simplified measures to be followed by obliged parties under the know-your-customer principle in accordance with the Regulation, together with other explanations.
The communiqué can be accessed from the link below:
https://masak.hmb.gov.tr/masak-genel-tebligi-sira-no-5/
Why is knowing your customer important?
Knowing your customer covers verifying the person's identity, understanding the purpose of the transaction and assessing the risk. This process is the first line of defense against money laundering and terrorist financing.
Simplified measures allow less information to be requested in certain low-risk situations. For risky customers, enhanced measures are applied.
Institutions are expected to embed these processes in their systems and train their employees.
