Within the framework of the Regulation on the Amendment of the Regulation on Measures Regarding Prevention of Laundering Proceeds of Crime and Financing of Terrorism which entered into force through the Presidential Decision dated 30.04.2021 and numbered 3941 published in the Official Gazette dated 01.05.2021 and numbered 31471, the crypto asset service providers have been specified among the “Obliged Parties” stated under the Regulation on Measures Regarding Prevention of Laundering Proceeds of Crime and Financing of Terrorism (“Regulation”).
Following entering into force of the Regulation, the Financial Crimes Investigation Board (“MASAK”) published the guide titled the Main Principles for the Crypto Asset Service Providers Regarding Prevention of Laundering Proceeds of Crime and Financing of Terrorism (“Guide”) on 04.05.2021.
The Guide firstly provides brief explanations regarding the activities of MASAK, and the crimes of laundering proceeds of crime and financing of terrorism. As for the definition of crypto asset, the Guide refers to the Regulation Prohibiting Payments Through Crypto Assets, which is published in the Official Gazette dated 16.04.2021 and numbered 31456 and entered into force on 30.04.2021. The Guide defines the activities of the crypto asset service providers as “the mediation regarding the trading of the crypto assets through electronic transaction platforms”.
The Guide also provides detailed and instructive application-oriented information regarding the obligations that the crypto asset service providers have under the Regulation as obliged parties which are,
- Know your customer (especially the identification of natural persons and legal persons, identification in subsequent transactions, and remote identification),
- Suspicious transaction reporting,
- Providing information and documents,
- Regular reporting, and
- Retaining and submission.
The Guide includes information on the administrative and legal sanctions to be imposed in the case of failing to fulfil the obligations that the crypto asset service providers have as obliged parties under the Regulation. Accordingly, failing to fulfil the obligation of know your customer, the obligation of suspicious transaction reporting, and the obligation of regular reporting causes administrative fines to be issued by MASAK under the Law No 5549 On Prevention of Laundering Proceeds of Crime (“Law no 5549”). Moreover, failing to fulfil the obligation of not to disclose any information on the suspicious transaction reporting to parties except for the auditors assigned for auditing of obligations and for the courts during trial, the obligation of providing information and documents, and the obligation of retaining and submission causes the sanctions of imprisonment and legal fines under the Law no 5549; whereas security measures are imposed on the legal persons.
The Guide also provides certain detailed examples of suspicious transaction types and draft forms to be used for the suspicious transaction reporting.
You may reach the full Turkish version of the Guide via the link below: