Turkish financial institutions to start monitoring clients' transactions

The new "complaince programme" regulation, stipulating banks, stock brokers, insurance and retirement companies, postal services to take a series of measures against laundering of criminal money and financing of terrorism, will take effect as of Monday.

Under the risk oriented complaince programme, the said companies are expected to create corporate policy and procedures that would guide and govern processes of risk management, monitoring, control, training, and internal auditing.

Risk management

With the risk management enforced by the programme companies have to develop methods to define, classify, and assess risks related with services, clients and countries. Under risk management: the clients and transactions will be classified, the ones carrying risk will be monitored and reported to related units. Periodic reports on risk monitoring and assessment will be provided to the Board of Governors.

Engaging in business with clients that are in a high risk category will require legal consent of the superiors along with a through inspection of the source of assets. Complicated and unusual transactions will be put on watch, and when transactions exceed a certain limit, client profile will be checked for relevance.

"Know your customer"

All related companies assigned compliance officers. Larger companies also assigned compliance officers and a group of personnel to work under them to meet the requirements.

Adnan Erturk, Head of the Financial Crimes Investigation Board (MASAK), told the Anatolia news agency that a new era, in fight against money laundering and financing of terrorism had begun noting that the motto of this era was "know your customer".

"The game rules in fight against money laundering and financing of terrorism are clearly defined now. We are setting up a mechanism to make clear distinctions between the east and the west. We are eradicating the uncertainties. But there is no need to worry for people who have nothing to do with crime or financing of terror. Regulations are in compliance with international law."

He said it would take three to five months for the system to take root, noting that they would later start auditing.

Source: THE ANATOLIA NEWS AGENCY