Turkey to Implement Transaction Declarations for Amounts exceeding ₺200K to Combat Informal Economy
Turkey is set to introduce new financial reporting requirements for electronic fund transfers (EFT), money transfers, and cash transactions exceeding ₺200,000 (approximately $5,900) as part of its efforts to combat the informal economy and align with international anti-money laundering (AML) standards. The regulations, drafted by Turkey's Financial Crimes Investigation Board (MASAK) under the Treasury and Finance Ministry, are scheduled to take effect on January 1, 2026[1].
Key aspects of the new requirements include:
- Mandatory declarations for EFTs, money transfers, and cash transactions exceeding ₺200,000.
- A graduated reporting system:
- Transactions between ₺2 million and ₺20 million must have a "cash transaction declaration form."
- Transactions exceeding ₺20 million require detailed explanations and supporting documentation.
- Customers conducting transactions must provide descriptive reasons; general categories like "individual payment" need a minimum of 20 characters describing the transaction.
- Several transaction types are exempt, such as government agency transactions, interbank transfers, and low-value ATM transactions.
- Financial institutions are required to offer declaration options and will face administrative sanctions if they fail to comply under Law No. 5549[1].
The new regulations reflect MASAK's commitment to implementing Financial Action Task Force (FATF) principles, emphasizing risk-based analyses and referring to the National Risk Assessment Report. The regulation aligns with approaches in FATF member countries for maintaining international financial transparency standards and AML compliance[1].
The regulation aims to enhance financial system security, prevent undocumented transactions, and increase transparency. By implementing these measures, Turkey reinforces its commitment to global AML standards as established by FATF[1].
Financial institutions failing to comply with the requirements will face administrative sanctions under Law No. 5549 once the regulation takes effect. A General Communique Draft has been prepared for monitoring EFT, money transfer, and cash transactions, taking into account approaches applied in FATF member countries[1].
[1] https://www.mak.gov.tr/tr/haberler/9817/yeni-elektronik-para-cezalari-ve-para-cekis-cezalari-hakkunda-yeni-dusunce-ve-yontemler-belirlenmiyste
- The Turkish government, through its Financial Crimes Investigation Board (MASAK) under the Treasury and Finance Ministry, is introducing new policies and legislations to combat the informal economy and align with international anti-money laundering standards.
- These new regulations will require mandatory declarations for electronic fund transfers, money transfers, and cash transactions exceeding ₺200,000, introducing a graduated reporting system that includes a "cash transaction declaration form" for transactions between ₺2 million and ₺20 million, and detailed explanations for those exceeding ₺20 million.
- Financial institutions in Turkey will be required to offer declaration options, and those that fail to comply will face administrative sanctions under Law No. 5549 once the regulation takes effect on January 1, 2026.
- The new rules are designed to enhance the financial system's security, prevent undocumented transactions, and increase transparency, aligning with Financial Action Task Force (FATF) principles and the approaches of FATF member countries for maintaining international financial transparency standards and anti-money laundering compliance.
