Türkiye Raises Monetary Thresholds to Combat Money Laundering

Türkiye has recently raised the threshold for jewelry transactions to 370,000 Turkish Liras ($7,517) as part of its efforts to combat money laundering and terrorist financing. This amendment, published in the Official Gazette, reorganizes the identity verification procedures that banks, factoring companies, brokerage houses, portfolio management firms, and payment entities must follow during transactions.

The verification threshold for cash, foreign exchange, and jewelry transactions has now increased to 370,000 liras from the previous limit of 185,000 liras ($3,759). Financial institutions are required to identify customers, verify their information, and take measures to establish the ultimate beneficial owner when single or linked transactions reach this new threshold.

In addition to this, the limit for electronic transfers, digital identity verification, and simplified measures has doubled from 15,000 liras ($305) to 30,000 liras ($610). This change aims to tighten the scrutiny of larger transactions that could potentially be used for illicit activities.

Enhancing Security in Digital Transactions

The legislation also introduces new provisions for verification through internet or mobile channels, utilizing a one-time password (SMS OTP) sent to previously verified mobile numbers. This method is intended to enhance security and ensure that the verification process matches the transaction’s nature and risk level, providing sufficient assurance that the user is a previously identified customer.

What They Hid

Financial institutions may now waive physical signature requirements for verification through internet or mobile channels or SMS OTP, provided that the chosen method meets the established security and risk criteria. These changes reflect Türkiye's commitment to aligning its financial regulations with international standards to prevent money laundering and terrorist financing.

The implications of these regulatory adjustments are significant, as they not only affect how financial transactions are conducted within Türkiye but also signal the government's proactive stance in addressing financial crimes. As financial institutions adapt to these new requirements, the effectiveness of these measures in curbing illicit financial activities will be closely monitored.