Anti-Money Laundering (AML) Law

Money laundering is the process of disguising the origin of criminally derived proceeds to give them a legitimate appearance. This process constitutes a major threat to both national legal systems and the international community. Money laundering not only facilitates the financing of organized crime but also enables the continuation of crimes such as the financing of terrorism, corruption, and drug trafficking. Therefore, Anti-Money Laundering (AML) law is essential for states to protect their financial systems and ensure global financial security.

International Framework and Key Actors 

The foundation of AML law is composed of international instruments. In this context, the most important actor is the Financial Action Task Force (FATF). Established in 1989, the FATF is an intergovernmental organization that sets international standards for combating money laundering and terrorist financing. The FATF’s “40 Recommendations” are transposed (or implemented) into national law by countries, and compliance is regularly monitored through mutual evaluations.

Other significant international instruments in the fight against money laundering include the United Nations Palermo Convention (2000) and the UN Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances (1988, Vienna Convention). The European Union has also adopted binding AML Directives for member states. Specifically, the 5th and 6th AML Directives detail issues such as Customer Due Diligence (CDD) / Know Your Customer (KYC) obligations, Suspicious Transaction Reporting (STR), and the implementation of sanctions lists.

AML Legislation in Turkey In Turkey, the most important legal regulation in the field of preventing money laundering is Law No. 5549 on the Prevention of Laundering Proceeds of Crime ( Suç Gelirlerinin Aklanmasının Önlenmesi Hakkında Kanun). This Law regulates the obligations of financial institutions and certain obliged entities (such as banks, insurance companies, notaries, and those dealing in precious metals) regarding identity verification, suspicious transaction reporting, and record-keeping. The institution responsible for the implementation of these obligations is the Financial Crimes Investigation Board (MASAK).

AML Processes and KYC 

For the effective implementation of AML law, institutions have three fundamental obligations:

1. Know Your Customer (KYC): Financial institutions must verify the customer's identity, determine the customer’s risk profile, and conduct ongoing monitoring of the business relationship.

2. Suspicious Transaction Reporting (STR): Unusual, suspicious, or illegal-source transactions must be reported (filed) to MASAK or the relevant authority.

3. Record-Keeping and Surveillance: It is mandatory to retain transaction records for a specified period and submit them to auditing authorities when required.

4. KYC processes do not only verify the customer's identity; they also adopt a risk-based approach by monitoring the customer's financial behavior. Thus, stricter surveillance is applied to high-risk customers.

Legal Consequences 

Non-compliance with AML obligations leads to severe sanctions. These sanctions can take the form of administrative fines, revocation of operating licenses, and even criminal liability. Furthermore, individuals who commit the act of money laundering face penalties such as imprisonment and asset forfeiture. At the international level, countries that fail to comply with AML rules risk being included in the FATF’s "grey list" or "black list", leading to exclusion from the international financial system.

Conclusion 

The prevention of money laundering is a process that must be carried out through international cooperation, not just at the national level. The core objective of AML law is to prevent the financial system from facilitating the circulation of criminal proceeds and to protect the integrity of the economic order. Within this framework, effective cooperation between both national authorities and the private sector is essential.