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REPUBLIC OF TURKEY
MINISTRY OF FINANCE
FINANCIAL CRIMES INVESTIGATION BOARD
MASAK ACTIVITY REPORT 2012
TABLE OF CONTENTS
STATEMENT BY HEAD OF MASAK ...................................................................................... viii
I. COMBATING AGAINST LAUNDERING PROCEEDS OF CRIME AND FINANCING
OF TERRORISM ............................................................................................................................ 1
II. OVERALL INFORMATION ON MASAK ........................................................................... 3
A. Vision and Mission .............................................................................................................. 3
B. Power, Functions and Responsibilities................................................................................ 3
C. Administrative Structure Information ................................................................................. 4
1. Position in the Ministry and Organizational Structure .................................................... 4
2. Human Resources ............................................................................................................ 7
III. PURPOSE AND OBJECTIVE ............................................................................................. 10
A. Purpose and Objective ....................................................................................................... 10
B. Essential Priorities ............................................................................................................. 10
IV. INFORMATION AND ASSESSMENTS ON ACTIVITIES ............................................... 11
A. Fiscal Information ............................................................................................................. 11
B. Information on Performance ............................................................................................. 13
1. Regulation and Coordination Activities ........................................................................ 13
1.1. Coordination Board Meetings ............................................................................. 13
1.2. Other Activities ................................................................................................... 14
2. Studies for Detection and Prevention of Laundering and Financing of Terrorism ....... 14
2.1. Data Collection Activities ................................................................................... 15
2.1.1. Suspicious Transaction Reports...................................................................... 15
2.1.2. Requests for evaluations and examinations made by Public Prosecutor’s
Offices and Courts ................................................................................................... 20
2.1.3. Other Reports as of years (2006-2012)........................................................... 21
2.1.4. Information Requests ...................................................................................... 24
2.2. Analysis, Evaluation and Examination ............................................................... 25
2.2.1. Analysis and Evaluation ................................................................................. 26
2.2.1.1. Analysis and Evaluation regarding Laundering Offence ........................ 26
2.2.1.1.1. Institutions Informed after Analysis and Evaluation ........................ 30
2.2.1.1.2. Subjects of Predicate Offences Revealed After Analysis and
Evaluation ......................................................................................................... 31
2.2.1.2. Analysis and Evaluations related to Terrorist Financing Offence........... 32
2.2.1.2.1. Institutions Informed after the Analysis and Evaluations ................ 34
2.2.1.3. General Analysis ..................................................................................... 35
2.2.1.3.1. Strategic Analysis and Evaluation .................................................... 35
2.2.2. Examinations into Laundering Offence .......................................................... 35
3. Supervision of Obligations ............................................................................................ 39
3.1 Supervisions of Compliance with Obligations ....................................................... 39
3.2. Examinations of Violations of Obligations and Administrative Fines Imposed . 40
3.3. Judicial Penalties ................................................................................................. 42
4. Activities Related to Foreign Relations ........................................................................ 43
4.1. FATF -Turkey III. Round Mutual Evaluation Process ....................................... 43
4.2. The Process of “International Cooperation Review Group (ICRG) in FATF -
Turkey Relation ............................................................................................................ 44
4.3. Memorandums of Understanding (MOUs) Signed with Counterpart Institutions ..
............................................................................................................................. 46
4.4. Meetings Abroad ................................................................................................. 47
5. Training and Informing Activities and Other Activities for Increasing Public Awareness
....................................................................................................................................... 48
5.1. In-house Trainings ............................................................................................... 49
5.2. Training Activities for Obliged Parties and Other Public Institutions ................ 49
6. Information Technologies and Communication Activities ........................................... 50
6.1. Enhancement Program of Administrative Capability ......................................... 51
6.2. MASAK IT Modernization Program .................................................................. 52
C. Performance Results .......................................................................................................... 54
1. Table on Performance Results ....................................................................................... 54
2. Evaluation of Performance Results ............................................................................... 68
3. Evaluation of Performance Information System ........................................................... 69
V. ASSESSING INSTITUTIONAL CAPABILITY AND CAPACITY ................................... 69
A. Analysis of Strong and Improvable Qualifications, Opportunities and Threats (GZFT
Analysis) .................................................................................................................................... 69
VI. CONCLUSION ..................................................................................................................... 70
TABLES
Table 1– Dispersion of Personnel (2003-2012) ......................................................... 7
Table 2– Numbers of Personnel As Per Titles (2012) ............................................... 8
Table 3– Personnel’s Age Profile (2012) ................................................................... 9
Table 4- Public Staff Foreign Language Knowledge (KPDS) level of MASAK
Personnel* .................................................................................................................. 9
Table 5- Economic Classification of Budget Allowance Allocations and
Expenditures (2008-2012)(TL) ................................................................................12
Table 6- The General Dispersion of the Reports Sent in 2012 ................................15
Table 7- The Numbers of STRs and the dispersion of them in respect of their
sources (2006-2012) .................................................................................................16
Table 8- Dispersion of Number of Financial Institutions Sending STRs in Financial
Sector as per years (2006-2012) ...............................................................................18
Table 9- Suspicious Transaction Types as to the Nature of Suspicion (2012) ........19
Table 10- Requests for evaluations and examinations made by Public Prosecutor’s
Offices and Courts ....................................................................................................20
Table 11– Number and Sources of Other Reports (2006-2012) ..............................21
Table 12– Number of the Referrals and their Alleged Subjects (2012) ..................23
Table 13– Exchange of Information with Foreign Counterparts (2006-2012) ........24
Table 14– Analysis and Evaluation Files Concluded (2003-2012) .........................26
Table 15– Subjects of the Analysis and Evaluation Files (2008 -2012) ..................28
Table 16- Institutions provided with intelligence after analyses and evaluations
(2012) .......................................................................................................................30
Table 17- Subjects of Intelligence Provided After Analysis and Evaluation .........31
Table 18– Analysis and evaluation files concluded by years (2008 – 2012)* ........32
Table 19– Number of Persons Denounced (2009-2012) .........................................33
Table 20- Institutions provided with intelligence after the analyses and evaluations
(2012) .......................................................................................................................34
Table 21- Examination Files Concluded related to Laundering Offence (2008 –
2012) .........................................................................................................................36
Table 22- Number of Persons Denounced based on the Analysis and Evaluation
Files/Examination Files related to Laundering Offence (2008-2012) .....................37
Table 23– Number of Persons Denounced as to Predicate Offences (2008-2012) .38
Table 24– Supervision of Compliance with Obligations (2009-2012) ....................39
Table 25– Obliged Parties subject to Administrative Fine (2008-2012) .................40
Table 26– Acts subject to Administrative Fines (2008 – 2012) ..............................41
Table 27– Amount of Administrative Fines (2008-2012) .......................................41
Table 28– Number of Cases and Persons Referred to Public Prosecutor’s Office
(2008-2012) ..............................................................................................................43
Table 29– Training and Information Activities (2012) ............................................50
Table 30– GZFT Analysis ........................................................................................69
FIGURES
Figure 1- MASAK’s Position within the Ministry of Finance .................................. 5
Figure 2– MASAK Organization Chart ..................................................................... 6
CHARTS
Chart 1– Dispersion of the Personnel as per titles (2012).......................................... 7
Chart 2– Dispersion of the Personnel As Per Their Ages (2012) .............................. 9
Chart 3– Percentages of Expenditures (2012) ..........................................................13
Chart 4- Numeric Trend of Suspicious Transactions Reports as per years (2006-
2012) .........................................................................................................................17
Chart 5- Numerical Trend of Financial Institutions Sending STRs as per years
(2006-2012) ..............................................................................................................18
Chart 6- Suspicious Transaction Types as to the Nature of Suspicion (2012) ........20
Chart 7- The Numerical Trend of Requests for Evaluations and Examinations made
by Public Prosecutor’s Offices and Courts (2006-2012) .........................................21
Chart 8– Sources of Other Reports (2012) ...............................................................22
Chart 9– Number and Subjects of Referrals (2012) .................................................23
Chart 10- Foreign Counterparts making the highest number of requests (2012) ....25
Chart 11– Conclusion Rate of Analysis and Evaluation Files (2003 – 2012) .........27
Chart 12- Institutions provided with intelligence after analyses and evaluations
(2012) .......................................................................................................................30
Chart 13- Subjects of intelligence provided after the analysis and evaluations
(2012) .......................................................................................................................32
Chart 14- Conclusion ratio of the analysis and evaluation files (2008-2012) .........33
Chart 15- Percentage Distribution of the Persons Denounced (2009-2012) ...........34
Chart 16- Institutions provided with intelligence after the analyses and evaluations
(2012) .......................................................................................................................35
Chart 17- Examination Files Concluded related to Laundering Offence (2008 –
2012) .........................................................................................................................36
Chart 18- Number of Persons Denounced based on Files on Analysis and
Evaluation/Examination of Laundering Offence (2008-2012) ................................37
Chart 19- Number of Persons Denounced as to Predicate Offences (2008-2012) ..38
Chart 20- Obliged Parties subject to Administrative Fines (2008-2012) ................40
Chart 21- Acts subject to Administrative Fines (2008 – 2012) ...............................41
Chart 22- Amount of Administrative Fines (2008-2012) ........................................42
STATEMENT BY HEAD OF MASAK
Financial Crimes Investigation Board (MASAK) continued its activities intensively in 2012 as
well in combating money laundering and financing of terrorism; analysis, evaluation and referral
of data to relevant units obtained in relation to offences of money laundering and financing of
terrorism that are main functions of a financial intelligence unit; regulation and coordination;
money laundering investigations, supervision of obligations; training obliged parties and law
enforcement units and informing them.
Training activities for the purpose of enhancing awareness and effectiveness of employees of
obliged parties of obligations known as “preventive measures” in fighting against money
laundering and financing of terrorism and in implementing these measures remained in 2012.
In the framework of the works of MASAK performed to enhance suspicious transaction report
system, a workshop was organized for banks’ compliance officers and officials in Istanbul for the
purpose of introducing MASAK.ONLINE System and assessing it that was created by improving
available electronic suspicious transaction reporting (e-ŞİB) system.
As a result of training activities and workshops, the number of financial institutions besides
banks sending suspicious transaction report increased to 108 in 2012 compared to 91 in 2011 and
also the number of suspicious transaction report received from financial institutions besides
banks increased to 1.450 compared to 585 in 2011.
The number of suspicious transaction report increased to 15.318 compared to 8.739 in 2011.
Application of suspicious transaction reporting in electronic environment was started first in
banking sector and 99.7 % out of 13.801 total suspicious transaction report received from
banking sector was sent through electronic environment.
Main reason of the dramatic increase in suspicious transaction reports is the application of new
“electronic suspicious transaction reporting” system installed in 2012. That reporting in
electronic environment is secure, fast and easy way contributes the increase of number of report
in banking sector.
The activities which were carried out by the IT Directorate within MASAK are performed via
newly established “IT Technologies and Communication Group”. In the scope of analysis
conducted for information technologies and communication activities, “Programme on
Modernization of MASAK Information Systems” was prepared. The programme is composed of
two projects under the titles of “Project on Modernization of MASAK Information Systems” and
“Effectiveness in Combating Money Laundering and Financing of Terrorism”.
The most important outputs of the activities carried out in 2012 are Integrated Financial
Intelligence System (EMİS) developed for MASAK within the framework of improvement of
institutional applications and MASAK.ONLINE System. Due to EMİS and MASAK.ONLINE
System, the solutions produced by integrating softwares with different capacity and feature are
changed into other specific softwares produced for all of the needs of MASAK. At the same
time, thanks to EMİS, automation has been provided in the processes of data collection,
integration and analysis which are the stages of financial intelligence.
On the other hand, a training activity where we shared our experience and knowledge was
organized for Turkmen officials in order to contribute to their efforts to establish necessary
institutional and legislative infrastructure in combating money laundering and financing of
terrorism.
In the framework of supervision of compliance programmes, supervisions were continued and 53
supervisions within obliged parties were completed.
As a result of analysis and evaluations conducted for money laundering offence within MASAK,
relevant institutions were informed of 1.641 persons in the scope of the cases associated with the
offences in their field. Furthermore, MASAK referred 275 persons to Public Prosecutor’s Offices
on the ground of commitment of laundering offence as a result of evaluations and examinations
completed in 2012.
Following analysis and evaluations carried out by MASAK related to the offence of financing of
terrorism, we shared information about 22.370 natural and legal persons with concerned
institutions in 2012 compared to 987 in 2011.
Activities of promoting cooperation with counterpart units in foreign countries were continued in
2012 and MoUs were signed with financial intelligence units of USA, Netherlands, Belgium,
Poland, Malaysia, Kosovo, Russian Federation and the Republic of Philippines for the purpose of
cooperation in combatting money laundering and financing of terrorism.
I hope the 2012 Activity Report covering the information about the actions performed by
MASAK will be successful within the context of fulfilling the function of informing public and
on this occasion thanks my workmates for their efforts on preparing the report.
Ankara, 15/03/2013
Mürsel Ali KAPLAN
Head of MASAK
1
I. COMBATING AGAINST LAUNDERING PROCEEDS OF CRIME AND FINANCING
OF TERRORISM
Broadly, laundering means inserting ill-gotten gains into the economic system by legitimizing
them via disguising their illegal origin and changing their nature. The main purpose in
distinguishing laundering offence from the predicate offence which forms the origin of it is to
prevent offences committed to get gains by depriving those who benefit from proceeds of crime
from these gains. Therefore, fight against laundering offence is regarded as an important
instrument for the fight against predicate offences.
Fight against money laundering has two dimensions which are preventive and repressive
measures. Repressive measures with respect to detection of criminal and proceeds of crime after
commission of crime covers criminalization of money laundering, detection, investigation, trial
and conviction of launderers, detection, tracing, seizure and confiscation of laundered assets
were regulated by the Turkish Criminal Code No. 5237.
Since, developments in IT and variations in financial instruments have caused the economic
system, especially financial activities, to become faster, more complex and borderless, which has
created opportunities for money launderers and financers of terrorism. Thus, measures for
preventing proceeds of crimes from being inserted in the economic system has become more
important than ever in the fight against money laundering and the financing of terrorism.
In this framework, effective implementation of preventive measures by obliged parties such as
CDD, STR, internal control and internal audit, risk management and assigning compliance officer
set forth for the purpose of fighting against laundering of proceeds of crime and financing of
terrorism ensures prevention of laundering activities before commission and use of financial
system as a means of commission of these offences.
International regulations have also emphasized on the importance of preventive measures in the
fight against laundering proceeds of crime and financing of terrorism and the countries have been
called to take necessary measures in this scope.
The United Nations Convention against Transnational Organized Crime (Palermo Convention)
prepared by the UN in 2000 for the purpose of preventing transnational organized crimes and
enhancing cooperation among countries within this framework and to which Turkey became a
party on 30.01.2003 is the first instrument prepared for fight against organized crimes and
includes preventive measures for combating money laundering. The Convention also deals with
preventive measures aspect of the issue by requiring banks, non-bank financial institutions and
other bodies particularly susceptible to money-laundering to implement customer identification,
record-keeping and suspicious transaction reporting measures and thus required countries to
make necessary legal regulations within this framework.
The financing of terrorism means providing or collecting funds willfully and knowingly that they
will be used in committing terrorist activities. It is vitally important in the fight against terrorism
to eliminate financial sources of terrorist organizations and to prevent distribution channels of the
funds acquired. Beside classical measures and implementations in the fight against terrorism
which gained an international dimension and has reached significant amounts of funds, financial
sources of terrorist organizations should be eliminated as well. This requirement has added the
dimension of “the fight against financing of terrorism” to the fight against terrorism.
2
On the other hand, International Convention for the Suppression of the Financing of
Terrorismprepared by the UN in 1999 for the purpose of developing cooperation among countries
to adopt and establish effective measures for preventing the financing of terrorism and to which
Turkey became a party on 10.01.2002 also deals with preventive measures within the framework
of the fight against the financing of terrorism, and countries are called upon to take measures
requiring financial institutions and other professions involved in financial transactions to utilize
the most efficient measures available for the identification of their usual or occasional customers,
as well as customers in whose interest accounts are opened, and to pay special attention to
unusual or suspicious transactions and report transactions suspected of stemming from a criminal
activity, and states are called upon to audit all fund transfer institutions for the prevention of
terrorist financing and to take measures to detect or monitor the physical cross-border
transportation of cash and bearer negotiable instruments, subject to strict safeguards to ensure
proper use of information and without impeding in any way the freedom of capital movements.
In this respect, essential preventive measures related to money laundering and the financing of
terrorism are dealt with in Turkey by the Law No. 5549 on Prevention of Laundering Proceeds of
Crime. A general framework for these measures has been drawn by the Law upon a legal basis
and detailed legal arrangements has been set forth to be made by secondary legislation
considering variations in financial instruments and the number of laundering methods increasing
day by day.
Within this framework, the Regulation on Measures Regarding Prevention of Laundering
Proceeds of Crime and Financing of Terrorism, the Regulation on Compliance with Obligations
of Anti-money Laundering and Combating the Financing of Terrorism and MASAK General
Communiqués No. 5, 6, 7, 8, 9 were issued. 19
Preventive measures are defined in detail in the “Regulation on Measures Regarding Prevention
of Laundering Proceeds of Crime and Financing of Terrorism” which was published in the
Official Gazette No 26751 on 09.01.2008. Detecting customers, business relationships and
transactions considered to be highly risky in terms of money laundering and the financing of
terrorism is listed as a measure required to be taken in addition to customer identification for
customer due diligence which is the most important element in the prevention of laundering
offence. Also, the requirement of suspicious transaction reporting which is one of the main
elements of preventive measures is rearranged in the Regulation, and obliged parties are required
to pay special attention to complex and unusually high-amount transactions, thus, ensuring
monitoring of this kind of transactions.
Prepared for ensuring the compliance with obligations within a system to be established by
obliged parties and depending on the Law No 5549, Article 5 on “Training, Internal Control,
Audit and Risk Management Systems and other measures”, the Regulation on Compliance with
Obligations of Anti-money Laundering and Combating the Financing of Terrorism includes
provisions for compliance program to be established by each obliged party with a risk based
approach. This provision is essentially for ensuring the effectiveness of preventive mechanism in
combating money laundering and aims at ensuring that obliged parties pay the necessary attention
and care for preventing money laundering and the financing of terrorism.
Issues related to preventive measures defined in the “Regulation on Measures Regarding
Prevention of Laundering Proceeds of Crime and Financing of Terrorism” and the “Regulation on
Compliance with Obligations of Anti-money Laundering and Combating the Financing of
Terrorism” are regulated in detail in MASAK General Communiques.
3
In this respect, ‘simplified measures’ required to be obeyed by obliged parties about CDD
principles are defined in MASAK General Communiques No.5 and 9; explanations for effective,
timely and proper ‘suspicious transaction reporting’ by obliged parties under the scope of
AML/CFT are defined in MASAK General Communique No.6; explanations regarding making
customer identification information of obliged parties’ customers with permanent business
relationship in line with the Regulation and other explanations regarding customer identification
are defined in MASAK General Communique No.7.
II. OVERALL INFORMATION ON MASAK
A. VisionandMission
MASAK’s vision and mission has been defined as follows.
Vision: The vision of MASAK is to become a leading institution that contributes to establishment
of an efficient economy and a safe society through effectively combating laundering proceeds of
crime and terrorist financing.
Mission: The mission of MASAK regarding prevention and detection of money laundering and
terrorist financing is to contribute to making policies and regulations, to collect and analyze
information quickly and reliably, to carry out examination and research and to convey the
information and results to relevant authorities.
B. Power, FunctionsandResponsibilities
After the Law No. 4208 on Prevention of Money Laundering entered into force on 19.11.1996,
Financial Crimes Investigation Board (MASAK) was established on 17.021997 and our country
became one of those fighting against money laundering.
Having started operating on 17 February 1997, MASAK is an administrative unit attached to the
Minister of Finance and its powers and functions were initially defined in the Law No. 4208.
Powers and functions of MASAK were redefined in Article 19 of the Law No. 5549 on
Prevention of Laundering Proceeds of Crime which entered into force on 18 October 2006 by
being published in the Official Gazette No. 26323. Accordingly, MASAK fulfills the following
essential services:
• To develop policies and implementation strategies, to coordinate institutions and
organizations, to conduct collective activities, to exchange views and information for the
prevention of laundering proceeds of crime.
• To prepare law, by-law and regulation drafts in accordance with the policies determined,
to make regulations for the implementation of Law 5549 and related decisions of Council of
Ministers.
• To carry out researches on the developments and trends on laundering proceeds of crime
and on detection and prevention methods.
4
• To make sector-specific studies, to develop measures and to monitor the implementation
for the prevention of laundering proceeds of crime.
• To carry out activities to raise public awareness and support.
• To collect data, to receive suspicious transaction reports, to analyze and evaluate them in
the scope of prevention of laundering proceeds of crime and terrorist financing.
• To request for examination from law enforcement and other relevant units in their fields,
when required during the evaluation period.
• To carry out or to have carried out examinations on the subject matters of Law 5549.
• To denounce files to the Chief Public Prosecutor’s Office for the necessary legal actions
according to the Criminal Procedure Law in the event of detecting serious findings as a result of
the examination that a money laundering offence has been committed.
• To examine the cases conveyed from Public Prosecutors and to fulfill the requests related
to the determination of money laundering offence.
• To convey the cases to the competent Public Prosecutor’s Office in cases where serious
suspicion exists that a money laundering or terrorist financing offence has been committed.
• To ensure supervision of obligations within the scope of Law 5549 and relevant
legislation.
• To request all kinds of information and documents from public institutions and
organizations, natural and legal persons, and unincorporated organizations.
• To request temporary personnel assignment from other public institutions and
organizations within the Presidency, when their knowledge and expertise is necessary.
• To carry out international affairs, to exchange views and information for the subjects in
the sphere of its duties.
• To exchange information and documents with counterparts in foreign countries, and for
this purpose, to sign memoranda of understanding which are not in the nature of an international
agreement.
C. AdministrativeStructure Information
1. Position in theMinistryandOrganizationalStructure
According to subparagraph (g) of Article 8 in Decree Law no. 178 on Organization and Duties of
Ministry of Finance, MASAK is a “main service unit” within the Ministry of Finance, and
according to Article 19 of Law no. 5549 shall work directly attached to Minister of Finance.
5
MASAK carries out its functions through deputies of the head and heads of departments attached
to the Head of MASAK and departments of Foreign Relations, Monitoring Legislation and
Coordination, Training, Data Collection, Data Entry, Supervision of Obligations, Analysis and
Evaluation related to Laundering Offence, Examination of Laundering Offence, Analysis and
Evaluation related to Financing of Terrorism, General Analysis Groups and branches of
Informatics, Human Resources and Administrative and Fiscal Affairs attached to them.
Figure 1- MASAK’s Position within the Ministry of Finance
6
Financial intelligence units are main organs of fight against laundering proceeds of crime and the
financing of terrorism which undertake significant functions in this fight.
In its Recommendation 26, FATF requests countries to establish a national and central authority
that receives and analyses STRs and sends them to relevant units.
Within this framework, as the Turkish Financial Intelligence Unit, MASAK undertakes
regulatory, supervisory and training functions as well as basic FIU functions. MASAK
organization chart is given below in Chart 2.
Figure 2– MASAK Organization Chart
7
2. Human Resources
Total number of personnel working at MASAK is 182. The following table gives information
on dispersion of personnel within the organization.
Table 1– Dispersion of Personnel (2003-2012)
2012 16 56 33 4 13 60 182
(*) The Head, Deputies of the Head, Head of Department, Director of Branch (1 Finance
Expert is Director of Branch).
(**) IT Director, Engineer, Analyst, Programmer, Computer Operator.
(***) Chief, Translator, Revenue Expert, Data Preparation and Control Operator, Civil
servants, Technician, Distributor, Servant.
Chart 1–Dispersion of the Personnel as per titles (2012)
16; 9%
56; 31%
33; 18% 4; 2% 13; 6%
60; 33%
Administrative Staff Finance Expert Finance Ass. Exp. Tax Inspector IT Staff Other Staff
Years Administrative
Staff
(*)
Finance
Expert
Finance
Assistant
Expert
Tax
Inspector
IT Staff
(**)
Other
Staff
(***)
Total
2003 6 24 27 3 8 45 113
2004 7 35 17 7 8 42 116
2005 7 41 9 7 11 51 126
2006 13 42 15 6 10 52 138
2007 13 40 22 3 12 56 146
2008 12 43 20 4 12 63 154
2009 13 44 21 3 12 68 161
2010 15 54 21 4 13 65 172
2011 15 54 28 4 11 62 174
8
Table 2– Numbers of Personnel As Per Titles (2012)
Title Number of Personnel
President 1
Vice President 2
Head of Department 8
Director of Branch 5
Finance Expert 56
Finance Assistant Expert 33
Tax Inspector 4
Revenue Expert 14
Revenue Assistant Expert 4
Translator 4
Engineer 3
Statistician 2
Analyst 1
Programmer 3
Computer Operator 2
Data Preparation and Control Operator 23
Chief 5
Technician 2
Driver 1
Distributor 4
Servants 6
182
Permanent Staff 137
Contract Staff 1
Interim Staff at MASAK 44
TOPLAM 182
Staff on Unpaid Leave 4
Temporarily Assigned in Another Unit 1
On Graduate Program Abroad 1
De facto Available : 176
9
Table 3–Personnel’s Age Profile (2012)
Age Number
20-29 27
30-39 80
40-49 56
50-59 19
Total 182
Chart 2–Dispersion of the Personnel As Per Their Ages (2012)
The following table gives information on Public Staff Foreign Language Knowledge
(KPDS) level of MASAK Personnel.
Table 4- Public Staff Foreign Language Knowledge (KPDS) level of MASAK Personnel*
KPDS A Level KPDS B Level KPDS C Level
6 23 43
(*)= 1 Translator-Interpreter knows English at A level and French at B level.
27; 15%
80; 44%
56; 31%
19; 10%
20-29 30-39 40-49 50-59
10
III. PURPOSE AND OBJECTIVE
A. PurposeandObjective
MASAK’s strategic objective is “to fight against laundering proceeds of crime and the
financing of terrorism effectively” under the scope of the strategic purpose of “Expanding the
Formal Economy and Lowering the Rate of Financial Crimes” defined in the revised 2013-
2017 Strategic Plan announced by the Ministry.
B. EssentialPriorities
MASAK will give priority to the following activities in 2013 in order to achieve the strategic purpose and objective:
to pursue receiving result-oriented STRs for analysis, evaluation and examination besides the target of enhancing the database through evaluating the results obtained from application of new “electronic suspicious transaction reporting system” which started in 2012
to complete as soon as possible the analysis and evaluation of referrals and STRs received relating to offences of laundering proceeds of crime and the financing of terrorism. To contribute to increase the efficiency in combating laundering proceeds of crime and the financing of terrorism by subjecting the issues mentioned and may pose risk in the referrals and STRs to sectoral analysis through benefiting from mass data. For this purpose, to complete the studies relating to receiving the information and document in the standard form suitable for analysis and secure medium required from natural and legal persons especially banks.
to organise trainings for raising awareness of obliged parties on obligations known as “preventive measures” in combating laundering proceeds of crime and the financing of terrorism and to ensure the implementation of these measures.
to perform supervision of compliance with obligations within obliged
parties for ensuring them to comply with the obligations established under the scope of combating laundering proceeds of crime and the financing of terrorism.
to carry out effective and proactive works with law enforcement units,
other relevant institutions and organizations which MASAK is in cooperation and coordination with that fit the purpose of effective and efficient development of combating laundering proceeds of crime and the financing of terrorism.
to concentrate on works for prevention laundering proceeds of crime
derived from predicate offences such as drug trafficking, cigarette trafficking, usury, fuel smuggling, human trafficking and cyber-crimes.
11
to organize activities for enhanced communication and cooperation with
examiners for the purpose of increasing effectiveness in money laundering examinations and supervision of obligations.
to sign Memoranda of Understanding with FIUs of other countries
allowing to exchange information for intelligence in order to ensure international cooperation.
to develop institutional capacity for the purpose of combating effectively
financing of terrorism in accordance with international standards.
to keep on works for establishing legal mechanisms for freezing terrorist assets in order to ensure Turkey’s compliance with the international standards on combatting financing of terrorism.
IV. INFORMATION AND ASSESSMENTS ON ACTIVITIES
A. Fiscal Information
The following table gives information on the General Budget and allocated allowances and
expenditures of MASAK within the last five years.
12
Table 5- Economic Classification of Budget Allowance Allocations and Expenditures (2008-2012)(TL)
Economic
Classificati
on
Type of Budget
Expenditures
2008 2009 2010 2011
2012
All
ow
an
ce
Ex
pen
dit
ure
All
ow
an
ce
Ex
pen
dit
ure
All
ow
an
ce
Ex
pen
dit
ure
All
ow
an
ce
Ex
pen
dit
ure
All
ow
an
ce
Ex
pen
dit
ure
01 Expenditures for
the Staff 3.480.428 3.480.427 4.001.300 3.857.398 4.415.800 4.403.254 5.464.000 5.337.029
7.006.000
6.788.782
02
State Premium
Payments to Social
Security
Institution
293.020 285.025 338.100 326.949 547.520 544.247 664.000 643.332
812.000
777.571
03 Goods and
Services Purchase 530.500 385.148 671.400 497.195 608.001 566.046 793.000 723.466
762.000
532.045
05 Current Transfers 51.500 51.379 66.500 64.399 78.000 73.723 113.500 107.598
117.000
114.736
05 Capital
Expenditures 0 0 0 0 1.500.000 1.464.333 3.500.000 3.280.400
14.000.000
12.896.580
Total 4.355.448 4.201.979 5.077.300 4.745.941 7.149.321 7.051.603 10.534.500 10.091.825
22.697.000
21.109.714
13
Chart 3– Percentages of Expenditures (2012)
The chart above demonstrates the dispersion of budget expenditures in respect of budget
economic codes as of 31.12.2012. The greatest item in the Chart is “the personnel
expenditures” which constitutes 32,16 % of the total expenditures. Percentages of other
expenditure items are 3,68% for state premium payments to social security institutions; 2,52%
for purchases of goods and services; 0,54% for current transfers; and 61.09% for capital
expenditures. Current transfers indicate the payments made to international institutions
(Financial Action Task Force and Egmont Group) by Turkey for membership annual dues.
B. Information on Performance
1. RegulationandCoordinationActivities
1.1. Coordination Board Meetings
The Coordination Board for Combating Financial Crimes were ordinarily held two times in
2012 under the chairmanship of Undersecretary of Ministry of Finance, consisting of
President of Financial Crimes Investigation Board, President of Revenue Administration,
President of Tax Inspection Board, Deputy Undersecretary of Ministry of Interior, General
Director of Laws of Ministry of Justice, General Director of Economic Affairs of Ministry of
Foreign Affairs, President of the Board of Treasury Comptrollers, President of Insurance
Supervision Board, General Director of Banking and Foreign Exchange of Undersecretariat of
Treasury, General Director of Insurance of Undersecretariat of Treasury, President of
Inspection Board of Undersecretariat of Customs, General Director of Customs of
61,09
32,16
3,68
2,52 0,54
Expenditures
Capital Expenditures
Personnel Expenditures
State Premium Payments toSocial Security Institutions
Expenditures of Goods andServices Purchase
Current Transfers
14
Undersecretariat of Customs, Vice President of Banking Regulation and Supervision Agency,
Vice President of Capital Markets Board and Vice President of Central Bank.
Activities of MASAK in 2011 and the works on fighting financing of terrorism were
discussed in line with the agenda for the first meeting of the Board held on 19.04.2012,
The works on fighting financing of terrorism were discussed in line with the agenda for the
second meeting of the Board held on 26.09.2012.
1.2. OtherActivities
Within the scope of the studies carried out for the responding of opinion requests from
obliged parties and other institutions and establishments regarding Law No.5549 and
secondary legislations, 28 opinion requests were responded by MASAK in 2012.
Additionally, 84 information acquisition request and 18 parliamentary requests were
responded in 2012 for fulfilment of information acquisition request submitted to MASAK
within the scope of Law No: 4982 on Right of Information Acquirement and studies related to
responding of parliamentary requests concerning MASAK posed as part of studies of Grand
National Assembly of Turkey.
2. StudiesforDetectionandPrevention of LaunderingandFinancing of Terrorism
The obliged parties, within the scope of Law No.5549 and secondary legislation related to this
Law, report the transactions carried out by themselves or mediated by them in case of a
suspicion of terrorist financing or laundering of assets derived from crime to MASAK as
Suspicion Transaction Report (STR).
Public Prosecutor’s Office and the Courts may demand legal request from MASAK for
identifying whether the offence of laundering of assets derived from crime is committed or
not.
Public institutions and organizations, natural and legal persons may also refer the cases to
MASAK.
15
While Finance Experts are carrying out analyzing and evaluation studies related to STR, legal
request and referrals concerning financing of terrorism or laundering of assets derived from
crime; the examiners also carry out investigations regarding laundering offence.
2.1. Data Collection Activities
Most of data collection activities of MASAK are to convert reports into electronic data and to
integrate them into MASAK IT System after confirmation process. Due to data collection
activities, information in the reports conveyed to MASAK can be converted into clear and
distinct data and therefore it allows us to carry out systematic, analytic and statistical analysis
on the reports. We have realized exchange of information with our counterpart units in foreign
countries within the scope of data collection activities. The reports sent to MASAK might be
classified as follows:
a) Suspicious transaction reports sent from obliged parties,
b) Evaluation or investigation requests carried out by Public Prosecutor’s Office and the
Courts,
c) Informative articles and research reports sent from other public institutions,
d) Referrals and complaints made by natural or legal persons,
e) Referrals and complaints made by natural and legal persons abroad,
f) Adopted as direct referral from the news in the national and international press as of
their contents.
Table 6- The General Dispersion of the Reports Sent in 2012
Reporting Types 2012
Suspicious Transaction Reports 15.318
Requests of Public Prosecutor’s Office and Courts 89
Other Reports 430
Total 15.837
2.1.1. Suspicious Transaction Reports
Suspicious transaction reports; they are the reports sent to MASAK in compliance with the
standard procedures determined by MASAK where there is any suspicion that the asset, which
is subject to the transactions carried out within or through the natural and legal persons stated
as “obliged parties” within the scope of the Regulation on Measures Regarding Laundering
Proceeds of Crime and Financing of Terrorism and in accordance of article 4 of Law No.5549,
is acquired through illegal ways or used for illegal purposes.
16
Table 7- The Numbers of STRs and the dispersion of them in respect of their sources
(2006-2012)
Sources of STRs 2006 2007 2008 2009 2010 (*) 2011 2012
Banks 1133 2903 4889 9480 9968 8141 13.504
Brokers 7 40 9 168 28 117 237
Financing, Factoring,
Financial Leasing and
Investment Companies
- - 15 32 70
164
520
Insurance and Pension
Companies - 3 10 129 148
286
569
Notaries - - 1 6 1 4 1
The General Directorate
of Post and Telegraph
Organization
- - - 6 25
11
297
Foreign Exchange
Offices - - -
2
11
14
123
Cargo Companies - - - - - - 61
Public Accountants and
Certified Public
Accountants
- - - - -
1
-
General Directorate of
National Lottery - - - - -
1
5
Including construction
machines, all kinds of
ship, aircraft and vehicle
dealers,
- - - - -
-
1
Total
1.140
2.946
4.924
9.823
10.251
8.739
15.318
17
The number of STRs received in 2012 is the highest compared with previous ones MASAK
has received so far.
Taking into consideration the change of the STR numbers in sectors as per years, it is seen
that increasing trend in the number of STR received from financial sector and promotion of
awareness in fighting money laundering and financing of terrorism in financial sector
continued in 2012 as well.
Chart 4- Numeric Trend of Suspicious Transactions Reports as per years (2006-2012)
13.759 out of 15.318 STRs received in 2012 were submitted electronically. Electronic
reporting application is used in banking sector initially and %99,7 of 13,801 STRs were
submitted by banking sector electronically in 2012. That electronic reporting is a secure, rapid
and easy way contributes to the increase in the number of STRs in banking sector.
1.140
2.946
4.924
9.823 10.251 8.739
15.318
0
2.000
4.000
6.000
8.000
10.000
12.000
14.000
16.000
18.000
2006 2007 2008 2009 2010 2011 2012
18
Table 8- Dispersion of Number of Financial Institutions Sending STRs in Financial
Sector as per years (2006-2012)
Financial Institution 2006 2007 2008 2009 2010 2011
2012
Banks 31 28 28 31 26 29
30
Insurance and Pension
Companies - 1 5 24 18 27
36
Factoring Companies - - 2 6 14 26
28
Brokers 1 2 5 15 10 17
23
Financial Leasing
Companies - - - 4 4 14
15
Financing Companies - - 1 2 2 5 4
Foreign Exchange
Offices - - - 2 1 2
2
Total 32 31 41 84 75 120
138
Chart 5- Numerical Trend of Financial Institutions Sending STRs as per years (2006-
2012)
32 31 41
84 75
120
138
0
20
40
60
80
100
120
140
160
2006 2007 2008 2009 2010 2011 2012
Number of Financial Institution Sending STR
19
Considering the numerical trend of financial institutions sending STRs as per years, it is seen
that development for institutional awareness in financial sector with regard to cooperation in
fighting against laundering proceeds of crime and financing of terrorism continued in 2012 as
well. In this scope, the number of financial institutions sending STRs increased to 138
compared with 120 in 2011. Similarly, the number of financial institutions other than banks
increased to 108 from 91. It is observed that the increase is in the sectors who are focused and
for whom training and workshops are organized by MASAK or who are informed of
suspicious transaction trends.
For obliged parties reporting suspicious transactions to MASAK, total 114 suspicious
transaction types classified in terms of the nature of the suspicion in the General Communiqué
No. 6 are determined. In case STRs or situations encountered by obliged parties match with
one or more types stated in the General Communique 6, the types are determined in STR
forms.
More than one STR types can be chosen in the framework of reporting process. 25.503 STR
types were chosen in 15.318 STRs sent in 2012.
The dispersion of suspicious transaction types in respect of the nature of the suspicion is as
follows:
Table 9- Suspicious Transaction Types as to the Nature of Suspicion (2012)
Suspicious Transaction Types Number of Types
Carrying Out Transactions Not Having Reasonable Grounds 7.271
Carrying Out Transactions Incompatible With Financial Profile 5.667
Suspicious Cash Transactions 3.086
Inconsistency In Declarations And Documents Of The Customer 2.094
Suspicious Electronic Transfers Into or Out Of Country 1.663
Concrete Findings on Illegal Activities 1.486
Suspicious Credit Transactions 1.484
Establishing Financial Relations With Risky Persons 842
Transactions Related To Risky Countries 753
Carrying out Transactions with third persons who are not clearly
relevant 538
Suspicion Related To Financing of Terrorism 332
Concealing That The Transaction Is Carried out for the Benefit of
Someone Else 160
Structuring of High Amount Transactions 113
Suspicious Safe-Deposit Box Transactions 14
Total 25.503
20
Chart 6-Suspicious Transaction Types as to the Nature of Suspicion (2012)
As it is seen in the Table 9, suspicious cases below are usually determined in the STRs sent in
2012:
a) customers conducting transactions disproportionate to their financial profile
b) transactions not having any legal or economic ground or reasonable explanation
c) carrying out suspicious cash transactions
d) false or inconsistent points in the declarations, actions or submitted documents of the
customer
2.1.2. Requests for evaluations and examinations made by Public Prosecutor’s
Offices and Courts
Public Prosecutor’s Offices and Courts send their requests to MASAK in order to make
financial researches on detection of laundering proceeds of crime and financing of terrorism.
With regard to the requests, MASAK carries out analysis, evaluation and investigation
activities.
Table 10- Requests for evaluations and examinations made by Public Prosecutor’s
Offices and Courts
22,2%
28,5%
12,1%
8,2%
6,5%
3,0%
5,8%
3,3%
5,8%
2,1%
1,3%
0,4%
0,6%
0,1%
Carrying out transactions incompatible with…
Carrying out transactions not having reasonable…
Suspicious Cash Transactions
Inconsistency in declarations and documents of the…
Suspicious electronic transfers into or out of country
Transactions related to risky countries
Concrete findings on illegal activities
Establishing financial relations with risky persons
Suspicious credit transactions
Carrying out transactions with people who are not…
Suspicion related to financing of terrorism
Structuring of high amount transactions
Concealing that the transaction is carried out for the…
Suspicious safe-deposit box transactions
Years 2006 2007 2008 2009 2010 2011
2012
Requests for evaluations and
examinations made by
Public Prosecutor’s Offices
and Courts
93 84 74 69 107 71
89
21
Chart 7- The Numerical Trend of Requests for Evaluations and Examinations made by
Public Prosecutor’s Offices and Courts(2006-2012)
2.1.3. Other Reports as of years (2006-2012)
Public institutions and organizations send the issues which they consider to fall under the
duties of MASAK through a report drawn up by their own institution or through official
communication to MASAK
Denunciations made to MASAK by natural persons and legal persons within the scope of
private laws, and certain press articles are also considered as reports when they are related
with the duties of MASAK, and are integrated into our system; and financial research is
conducted in relation to those reports. Denunciations not related with MASAK are sent to
relevant public institutions.
Table 11– Number and Sources of Other Reports (2006-2012)
Other Reports 2006 2007 2008 2009 2010 2011 2012
Public Institutions 117 120 115 100 91 87 148
Banks 38 8 - - 1 - 1
Press 4 5 3 2 2 - 9
Natural Person / Legal
Persons within the scope
of private laws
304 284 359 350 331 270 265
Abroad 7 5 3 6 8 12 7
Total 470 422 480 458 433 369 430
93 84
74 69
107
71
89
0
20
40
60
80
100
120
2006 2007 2008 2009 2010 2011 2012
22
Chart 8– Sources of Other Reports (2012)
Referrals and complaints were mostly received from natural persons residing in Turkey. 73%
of those referrals and complaints were put into process to be evaluated within the scope of
anti-money laundering and terrorist financing; 26% of them were sent to relevant institutions
due to not being directly related to MASAK and as for the remaining 1%, petitioners were
requested to provide extra information as there were not concrete findings in those
referrals/complaints.
The subjects of the judicial requests and other referrals/complaints sent to MASAK have been
dispersed as follows:
148
1 9
265
7 Public Institutions
Banks
Press
Natural Person / Legal Personswithin the scope of private laws
Abroad
23
Table 12– Number of the Referrals and their Alleged Subjects (2012)
Denunciations and Their Subjects in 2012
Tax Evasion 118
Usury 84
Fraud 62
Corruption 44
Laundering Proceeds of Crime 34
Suspicious Money Movements 29
Smuggling 22
Proceeds Whose Sources are Unknown 19
Bid Rigging 15
Cash or Similar Instruments seized at Borders 15
Terrorism or Financing of Terrorism 14
Establishing Criminal Organization 13
Drug Trafficking 13
Theft 7
Providing Gambling Services 5
Violation of Social Security Legislation 4
Other 21
Total 519
Chart 9– Number and Subjects of Referrals (2012)
When the subjects referred to MASAK in 2012 are examined, it is seen that most of them are
about tax evasion, usury and fraud, as in 2011.
0
20
40
60
80
100
120
140
24
In addition to them; corruption, laundering proceeds of crime and suspicious money transfers
are the other major subjects referred to MASAK.
2.1.4. Information Requests
As a financial intelligence unit (FIU), MASAK exchanges intelligential information and
documents with foreign counterpart institutions within the scope of anti-money laundering
and combating terrorist financing. MASAK, given duty and power on the mentioned issue
under Article 19 (1)(m) titled “Duties and Powers of the Presidency” of Law No. 5549,
mostly exchanges information with financial intelligence units of Egmont Group members.
Egmont Group was established in Brussels on 09.06.1995 by the participation of 24 countries
and 8 international organizations. As of 31.12.2012, financial intelligence units of 131
countries are members of the Egmont Group. This membership allows countries to exchange
information through a secure communication network (Egmont Secure Web – ESW). The
main objective of the Egmont Group is to assist countries to improve their AML/CFT systems
(anti- money laundering and combating terrorist financing systems), and to remove the
obstacles hindering the international exchange of information. MASAK became a member of
Egmont Group on 29.06.1998.
MASAK’s international exchange of information is mostly conducted with financial
intelligence units that use this secure communication network. MASAK also exchanges
information with foreign counterpart institutions not using Egmont Secure Web through mail
or telefax.
In 2012, MASAK received 221 information requests from counterpart institutions in relation
to money laundering and terrorist financing offences. These requests are generally about
unusual or suspicious financial transactions conducted in the country of the relevant financial
intelligence unit and involving money transfers made by Turkish citizens or made to Turkey
or to their country from Turkey.
Table 13– Exchange of Information with Foreign Counterparts (2006-2012)
Year Requests Received Requests Sent
2006 136 132
2007 196 59
2008 143 46
2009 169 162
2010 188 63
2011 202 38
2012 221 60
25
The following chart displays foreign counterparts making the most requests to MASAK in
2012. Information requests received are mostly from the FIUs of Belgium, Germany, Russia,
France and the Netherlands.
Chart 10- Foreign Counterparts making the highest number of requests (2012)
In 2012, MASAK sent 60 information requests to 35 foreign FIUs. 25% of those requests
have been made to FIUs of the Netherlands, Germany and the UK.
2.2. Analysis, Evaluation andExamination
MASAK carries out analysis and evaluation works for prevention and detection of financing
of terrorism and laundering proceeds of crime. It also carries out examinations for detecting
laundering proceeds of crime.
Analysis: It is the work carried out for obtaining qualified financial intelligence from various
data collected, and referrals and reports received within the scope of Law No.5549 by using
statistical and analytic methods and processing them with the help of technical instruments.
Evaluation; It is the work carried out for detecting serious suspicions and indications about
the assets and persons in relation to laundering offence based on cases which fall under the
duties of MASAK or the analyses performed.
Examination; It is the work carried out for detecting the facts indicating that the laundering
offence has been committed.
In accordance with Article 19 of Law No. 5549, MASAK carries out analysis and evaluations
on money laundering and terrorist financing through Finance Expertsemployed at MASAK
and money laundering examinations through Tax Inspectors, Customs and Trade Inspectors,
Sworn-in bank Auditors, Treasury Comptrollers, Insurance Supervision Experts and
30,80%
19,20%
10,90% 9,60%
8,30% 7,70%
3,80% 3,20% 3,20% 3,20%
0,00%
5,00%
10,00%
15,00%
20,00%
25,00%
30,00%
35,00%
26
Actuaries, Banking Regulation and Supervision Agency Experts and Capital Markets Board
Experts.
The analyses, evaluations and examinations carried out by MASAK can be initiated based on
various sources; and requests submitted by Public Prosecutor’s Office, denunciations received
from public institutions or organizations and the natural or legal persons at home or abroad,
and the suspicious transaction reports conveyed by obliged parties designated to report
suspicious transactions according to Law No.5549 are among the prominent ones.
2.2.1. Analysis and Evaluation
The Financial Intelligence Units are the most important organizational structures in combating
laundering proceeds of crime and financing of terrorism. The Egmont Group defines FIU as
follows;
“A Financial Intelligence Unit (FIU) is a central, national agency responsible for receiving
analyzing and disseminating to the competent authorities, disclosures of financial information
which are related to suspected proceeds of crime and potential financing of terrorism, or
required by national legislation, in order to counter money laundering and financing of
terrorism”.
Today, in every country that combats laundering proceeds of crime and financing of terrorism,
there are financial intelligence units that receive and analyze financial information and
disseminate it to the relevant units within the framework of the function of FIU even though
they may have different administrative structures, locations and powers.
MASAK, as the financial intelligence unit of Turkey, gives information to the relevant
institutions and organizations about the issues that are deemed necessary after the analyses it
carries out.
2.2.1.1. Analysis and Evaluation regarding Laundering Offence
Out of the referrals and suspicious transaction reports conveyed to MASAK, evaluation files
are opened for the ones that are considered to be qualified in respect of laundering offence
after the analysis.
Table 14– Analysis and Evaluation Files Concluded (2003-2012)
Year Number of Files Number of Concluded Files
2003 279 142
2004 407 221
2005 369 283
2006 692 275
2007 590 353
2008 400 324
2009 211 152
2010 159 93
2011 127 100
2012 98 38
27
Chart 11– Conclusion Rate of Analysis and Evaluation Files (2003 – 2012)
Number of Files Concluded/ Handled
As a result of the analysis and evaluation works carried out, it has been found out that many
cases which, at first glance, were thought to be unrelated with each other were in fact the
different components of the same attempt; and this situation impeded the analysis as all those
related cases were handled in different files. In this context, the cases which were detected to
be related with activities of money laundering and terrorist financing were merged under a
single file.
Considering the analysis and evaluation files on money laundering concluded between years
2008 and 2012, it is seen that various predicate offences have been committed but certain
offences such as drug trafficking, fraud and usury are more common.
0,51 0,54
0,77
0,40
0,60
0,81
0,72
0,58
0,79
0,39
0,00
0,10
0,20
0,30
0,40
0,50
0,60
0,70
0,80
0,90
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
28
Table 15– Subjects of the Analysis and Evaluation Files (2008 -2012)
YEAR SUBJECT OF THE PREDICATE
OFFENCE
NUMBER OF
FILES TOTAL
2008
Drug trafficking 61
324
Fraud 35
Customs smuggling 21
CMB Offences 11
Organized crime 10
Illegal gambling 10
Forgery of documents 6
Smuggling of precious metals 4
Embezzlement 4
Unjust enrichment 3
Fuel smuggling 2
Trading of organs and tissues 2
Receiving Bribe 2
Usury 2
Cigarette smuggling 1
Encouraging, aiding and mediating
prostitution 1
Bid rigging 1
Illegal financial transactions 141
Other 7
2009
Drug trafficking 25
152
Fraud 13
Organized Crime 10
Customs smuggling 9
Unjust enrichment 9
Fuel smuggling 6
Bid rigging 6
Usury 5
Bribe 5
Forgery of Documents 4
Encouraging, aiding and mediating
prostitution 4
Embezzlement 4
Migrant smuggling 1
CMB offences 1
Illegal gambling 1
Illegal financial transactions 48
Other 1
2010
Drug trafficking 19
93
Fraud 13
Customs smuggling 9
Usury 8
Organized Crime 6
Forgery of Documents 6
29
Bid rigging 4
Bribe 4
Migrant/human smuggling 3
Unjust enrichment 3
Embezzlement 2
Smuggling of Precious Metals 1
CMB offences 1
Illegal gambling 1
Illegal financial transactions 7
Other 6
2011
Usury 24
100
Drug trafficking 15
Fraud 11
Fuel smuggling 5
Embezzlement 4
Customs smuggling 4
Organized Crime 3
Migrant/human smuggling 3
Unjust enrichment 2
Bid rigging 2
Commercial counterfeiting 2
Bribe 2
Forgery of Documents 2
Cigarette Smuggling 2
CMB offences 1
Illegal financial transactions 13
Other 5
2012
Usury 8
38
Drug trafficking 6
Fraud 5
Organized crime 3
Fuel smuggling 1
Illegal gambling 3
Embezzlement 2
Customs smuggling 1
Bid rigging 1
Theft 1
Malpractice 1
Forgery of Documents 1
Illegal financial transactions 5
When, as a result of the evaluation carried out by Finance Experts, there is serious suspicion
that laundering offence has been committed the case is denounced to the authorized Public
Prosecutor’s Office. The cases in which some indicators have been detected about money
laundering and which require different areas of expertize are subject to examination by the
examiners listed in Article 2 of the Law No.5549. In this scope, 18% of the evaluations
concluded in 2012 were conveyed to examination.
30
2.2.1.1.1. Institutions Informed after Analysis and Evaluation
In the event that subjects within the duty fields of different institutions are encountered in
analyses and evaluations related to laundering offence, those institutions are also informed. In
this scope; as a result of the analyses and evaluations conducted in 2012 related to laundering
offence, various institutions were informed about 1641 persons for intelligence purposes
Table 16- Institutions provided with intelligence after analyses and evaluations (2012)
Institution Number of Persons
Judicial Authorities 583
Law Enforcement 448
Tax Inspection Board 420
National Intelligence Organization 42
Ministry of Customs and Trade 36
Other Ministries 19
Revenue Administration 16
Social Security Institution 2
Undersecretariat of Treasury 2
Capital Market Board 2
Other 71
Total 1.641
Chart 12- Institutions provided with intelligence after analyses and evaluations (2012)
583
448 420
42 36 19 16 2 2 2 71
Institutions Provided with Intelligence
31
2.2.1.1.2. Subjects of Predicate Offences Revealed After Analysis and
Evaluation
Subjects of the information provided to other institutions in 2012 after the analyses on
laundering offence are as follows:
Table 17- Subjects of Intelligence Provided After Analysis and Evaluation
Subject of the Predicate Offence Number of Persons
Fraud 273
Fuel Smuggling 238
Tax Evasion 210
Usury 129
Illegal financial transactions 211
Drug trafficking 96
Organized crime 70
Customs smuggling 68
Malpractice 54
Corruption 50
Unlawful profits 35
Bid rigging 29
Forgery 15
Embezzlement 13
Bribery 10
Violation of Law on The Protection Of The Value Of Turkish
Currency 10
Trade of pornography 4
Illegal gambling 3
Other 123
Total 1.641
32
Chart 13- Subjects of intelligence provided after the analysis and evaluations (2012)
2.2.1.2. Analysis and Evaluations related to Terrorist Financing Offence
Out of referrals and suspisicious transaction reports sent to MASAK, the ones that have been
analyzed and found out to be qualified in terms of terrorist financing offence are subject to
evaluation. Statistics on the files opened and completed between 2008-2012 within the scope
of financing of terrorism is shown in the table below.
Table 18– Analysis and evaluation files concluded by years (2008 – 2012)*
Year Number of files Number of concluded files
2008 40 12
2009 59 37
2010 70 30
2011 77 36
2012 69 17
* Group of Analysis and Evaluation of Financing Terrorism was founded and started its activities on 08.11.2007,
pursuant to Law No. 5549 which entered into force on 18.10.2006. 1The 40 Recommendations on anti-money laundering published by FATF in 1990 were revised and
republished in 1996 and 2003. Besides, FATF published 8 Special Recommendations on terrorist
financing in 2001 and published the Special Recommendation 9 in 2004. Thus, the total number FATF
Recommendations on anti-money laundering and terrorist financing reached 49. Later on, the 9 Special
Recommendations were incorporated into the other recommendations as adopted in the FATF Plenary
of February 2012 and the recommendations were published again as 40 Recommendations.
2According to the FATF procedures, countries which do not adequately comply with
16,64%
14,50%
12,80% 7,86%
12,86%
5,85%
4,27%
4,14%
3,29% 3,05%
2,13%
1,77%
0,91%
0,79%
0,61% 0,61% 0,24%
0,18%
Subjects of the Intelligence Provided Fraud 16.64%
Fuel Smuggling 14.5%
Tax Evasion 12.8%
Usury 7.86%
Illegal financial transactions12.86%
Drug trafficking 5.85%
Organized crime 4.27%
Customs Smuggling 4.14%
33
Chart 14- Conclusion ratio of the analysis and evaluation files (2008-2012)
Table 19– Number of Persons Denounced (2009-2012)
Year
Being a member
of a terrorist
organization
Terrorist
Financing
Supporting a
terrorist
organization
Total
2009 2 2 4
2010 223 119 12 354
2011 - 7 7 14
2012 19 20 - 39
Total 244 148 19 411
0,30
0,63
0,43 0,47
0,25
0,00
0,10
0,20
0,30
0,40
0,50
0,60
0,70
2008 2009 2010 2011 2012
Number of Files Concluded/Evaluated
34
Chart 15- Percentage Distribution of the Persons Denounced (2009-2012)
2.2.1.2.1. Institutions Informed after the Analysis and Evaluations
As a result of analyses and evaluations carried out within MASAK into terrorist financing
offence, we shared information on 22370 natural/legal persons with various institutions in
2012.
Table 20- Institutions provided with intelligence after the analyses and evaluations
(2012)
NAME OF THE INSTITUTION NUMBER OF PERSONS
Turkish National Police 20.471
Social Security Institution 1.243
National Intelligence Organization 289
The Turkish Gendarmerie 175
Public Prosecutor’s Offices/Courts 173
Ministry of Foreign Affairs 19
TOTAL 22.370
0
0,1
0,2
0,3
0,4
0,5
0,6
Being a member of aterrorist organization
Terrorist financing Supporting a terroristorganization
0,59
0,36
0,05
35
Chart 16- Institutions provided with intelligence after the analyses and evaluations
(2012)
2.2.1.3. General Analysis
2.2.1.3.1. Strategic Analysis and Evaluation
With regard to the risk that some natural or legal persons may be out of the scope of
supervision for money laundering and terrorist financing offences,risk based analyses have
been conducted by taking domestic and foreign money transfers into account. According to
the analyses conducted, Turkish National Police was provided with information so that
necessary work and research into 85 persons and 17 companies could be conducted.
2.2.2. Examinations into Laundering Offence
Taking the expertice the work requires into account, the files which are considered to need
further examination as a result of the evaluations carried out within the scope of laundering
offence stated in Article 282 of the Turkish Penal Code No.5237 and the files which are
decided by MASAK to be sent directly for examination due to their nature are conveyed to
the examiners stated in Article 2 of the Law No.5549.
The files subject to examination process are shown below by years.
0
5000
10000
15000
20000
2500020471
1243 289 175 173 19
36
Table 21- Examination Files Concluded related to Laundering Offence (2008 – 2012)
Year Number of Files under
Examination Number of Concluded Files
2008 319 201
2009 181 76
2010 148 73
2011 124 58
2012 102 31
Chart 17- Examination Files Concluded related to Laundering Offence (2008 – 2012)
MASAK makes denunciations as a result of both money laundering examinations conducted
through examiners, and analyses and evaluations. Those referrals/denunciations are shown
together below:
0
50
100
150
200
250
300
350
2008 2009 2010 2011 2012
319
181
148
124 102
201
76 73
58
31
Number of Files under Examination Number of Concluded Files
37
Table 22- Number of Persons Denounced based on the Analysis and Evaluation
Files/Examination Files related to Laundering Offence (2008-2012)
Year Analysis and
Evaluation
Examination of
Laundering Offence
Total Number of
Denunciations
2008 3 228 231
2009 - 115 115
2010 30 356 386
2011 117*
105 177
2012 133 142 275
Total 283 946 1.229
(*) corrected after the shift in the denunciation year of the evaluation file
Chart 18- Number of Persons Denounced based on Files on Analysis and
Evaluation/Examination of Laundering Offence (2008-2012)
0
50
100
150
200
250
300
350
400
2008 2009 2010 2011 2012
3 0
30
117 133
228
115
356
105
142
Analysis and Evaluation Examination of Laundering Offence
38
Table 23– Number of Persons Denounced as to Predicate Offences (2008-2012)
Predicate Offence 2008 2009 2010 2011 2012 Total
Drug Trafficking 97 53 26 34 1 211
Customs Smuggling 14 - 69 - - 83
Fraud 29 10 56 77* 140 312
Providing Illegal
Betting and
Gambling Services
- - 165 5 37 207
Forgery of Official
and Private
Documents
18 34 15 8 4 79
Fuel Smuggling 25 - 30 8 26 89
Embezzlement 5 1 10 30 - 46
Usury - 3 4 31 41 79
Cigarette Smuggling 24 - - 3 9 36
Other 19 14 11 26 17 87
Grand Total 231 115 386 222 275 1.229
* corrected after the shift in the denunciation year of the evaluation file
Chart 19- Number of Persons Denounced as to Predicate Offences (2008-2012)
Between 2008 and 2012, 1229 persons were denounced on grounds of laundering offence and
the predicate offences of those denouncements comprised 312 fraud offences, 211 drug
trafficking offences, 207 offences of providing illegal betting and gambling services and 89
fuel smuggling offences.
0
50
100
150
200
250
300
350
211
83
312
207
79 89
46 79
36
87
39
3. Supervision of Obligations
3.1 Supervisions of CompliancewithObligations
Pursuant to the Law no 5549 on Preventing the Laundering of Proceeds of Crime and related
legislation, activities of supervision of obligations are carried out separately or based on
ansupervision program.
In 2012, programmed supervision of compliance with obligations were conducted in terms of
customer identification, suspicious transaction reporting and assigning compliance officers
(limited to obliged parties liable to assign compliance officers). Within the scope of the
program, supervision of 89 obliged parties started and supervision of 41 obliged parties was
completed in 2012.
The supervision of 11 obliged parties, comprised of 4 factoring companies and 7 financial
leasing companies, that had started in previous years was also completed in 2012.
Within the scope of separately conducted supervision of compliance with obligations, an
obliged party operating in the field of lottery and betting business was also supervised in
2012.
Supervision of obligations are conducted by MASAK in a programmed manner since 2009
and the table on supervision of obligations conducted between 2009 and 2012 is given below:
Table 24– Supervision of Compliance with Obligations (2009-2012)
Obliged party Years
2009 2010 2011 2012
Banks 36 - - 2
Capital Market Brokerage Houses 21 23 43 11
Insurance and Pension Companies 53 - - -
Factoring Companies - 16 20 8
Financial Leasing Companies - 3 18 10
Financing Companies - 10 - 1
Portfolio Management Companies - 7 5 4
Asset Management Companies - - 6 2
Money Lenders - 10 10 1
Precious Metals Market Intermediaries - - 11 8
Istanbul Gold Exchange - - 1 -
Operators of Lottery and Bet Games - - 6 1
Authorized Institutions - - - 3
Real Estate agents - - - 2
Total 110 69 120 53
40
3.2. Examinations of Violations of ObligationsandAdministrativeFinesImposed
Examination of violation of obligation is an individual supervision carried out by the
examiners listed in the Law No. 5549 in relation to violations of obligations detected during
the supervision of compliance, or reported to or detected by MASAK.
In the event that an act contrary to obligations is detected during the examinations, an
administrative fine pursuant to Article 13 of the Law No. 5549 and Misdemeanour Law or a
judicial penalty pursuant to Article 14 of the Law is applied depending on the type of the
obligation.
Administrative fines are applied to obliged parties violating any of the obligations of customer
identification, periodical reporting and suspicious transaction reporting stated in the Articles 3
and 6 of the Law and in addition to that, in cases of violation of the obligations of customer
identification and suspicious transaction reporting, an administrative fine is also applied to
officials not abiding by the obligations.
When the obligations listed in the Article 5 of the Law no. 5549 are not complied with,
MASAK gives obliged parties at least 30 days so that they can remove the deficiencies and
take necessary measures. An administrative fine is applied, based on the mentioned Article, to
obliged parties not removing the deficiencies or not taking the necessary measures in the
given time.
Tables and charts given below display the dispersion of administrative fines imposed between
2008 and 2012 in terms of number of obliged parties, violating acts and amounts of
administrative fines.
Table 25– Obliged Parties subject to Administrative Fine (2008-2012)
Years 2008 2009 2010 2011 2012
Number of Obliged Parties 57 15 12 15 21
Chart 20- Obliged Parties subject to Administrative Fines (2008-2012)
57
15 12
15
21
0
10
20
30
40
50
60
2008 2009 2010 2011 2012
41
Table 26– Acts subject to Administrative Fines (2008 – 2012)
Years 2008 2009 2010 2011 2012
Customer
Identification 355 17 127 66 1275
Suspicious
Transaction
Reporting
13 10 5 23 1
Total number of acts 368 27 132 89 1276
Chart 21- Acts subject to Administrative Fines (2008 – 2012)
Table 27– Amount of Administrative Fines (2008-2012)
Years 2008 2009 2010 2011 2012
Amount of
Fine (TRY) 2.337.210 341.004 1.452.441 1.292.284 14.369.887
0
200
400
600
800
1000
1200
1400
2008 2009 2010 2011 2012
355
17 127 66
1275
13
10 5 23
1
Customer Identification Suspicious Transaction Reporting
42
Chart 22- Amount of Administrative Fines (2008-2012)
3.3. JudicialPenalties
Judicial penalties are imposed, under Article 14 of the Law No. 5549, on persons who violate
any of the obligations stated in the Articles 7, 8 and 4(2) of Law No. 5549 with regard to
providing information and documents; retaining and submitting; and not giving information to
anybody including the parties of the transaction that they report the suspicious transactions to
MASAK, other than the examiners assigned to conduct supervision of obligations and the
courts during legal proceedings.
The obligations of customer identification and suspicious transaction reporting which are
regulated within the scope preventive measures for anti-money laundering and terrorist
financing underpin both preventive measures and supervision of obligations. Therefore, these
issues are prioritized in the supervision of obligations and the act contradicting the obligations
are punished with administrative fines. On the other hand, the acts punishable with judicial
penalties are not the kind of acts that can often be encountered in the supervisions. For this
reason, the number of persons punished with a judicial penalty is low compared to ones
punished with administrative fines.
In this scope, two persons were denounced to Public Prosecutor’s Office by MASAK in 2012
due to violating the obligation of providing information and documents.
The table below shows the number of cases and persons denounced to Public Prosecutor’s
Office by MASAK between 2008 and 2012.
0
2.000.000
4.000.000
6.000.000
8.000.000
10.000.000
12.000.000
14.000.000
16.000.000
2008 2009 2010 2011 2012
2.337.210
341.004 1.452.441 1.292.284
14.369.887
2008 2009 2010 2011 2012
43
Table 28– Number of Cases and Persons Referred to Public Prosecutor’s Office (2008-
2012)
Years 2008 2009 2010 2011 2012
Number of
Cases 5 - - 2 1
Number of
people 9 - - 2 2
4. ActivitiesRelatedtoForeignRelations
4.1. FATF -Turkey III. RoundMutual Evaluation Process
FATF, which was founded in 1989 for the purpose of anti-money laundering and which later
included combating financing of terrorism and weapons of mass destruction operates in
OECD headquarters, and has 36 members composed of 34 countries including Turkey and 2
regional organizations. FATF evaluates its members within the frame of its Recommendations
and the Methodology written based on those Recommendations1.
Up to now, Turkey has been evaluated three times by the FATF, which were in years 1994,
1998 and 2006. Third Round Evaluation Report of Turkey was discussed and adopted in the
FATF Plenary held in Strasbourg on 21-23 February 2007.
Since the evaluation date, Turkey, which was rated non-compliant for 11, partially compliant
for 22, largely compliant for 12, compliant for 3 and not-applicable for 1 Recommendation
out of FATF’s then current 40+9 Recommendations in the III. Round Evaluation Report has
made significant progress in terms of legislation and implementation related to remediation of
the issues which were criticized and considered as deficiency in the report.
The progresses made relating to the matters criticized in FATF Turkey Evaluation Report are
evaluated by follow-up reports submitted to FATF. According to this, it was decided at FATF
Plenary Meeting held in February 2007 that, within the scope of regular follow-up2, the First
1The 40 Recommendations on anti-money laundering published by FATF in 1990 were revised and
republished in 1996 and 2003. Besides, FATF published 8 Special Recommendations on terrorist
financing in 2001 and published the Special Recommendation 9 in 2004. Thus, the total number FATF
Recommendations on anti-money laundering and terrorist financing reached 49. Later on, the 9 Special
Recommendations were incorporated into the other recommendations as adopted in the FATF Plenary
of February 2012 and the recommendations were published again as 40 Recommendations.
2According to the FATF procedures, countries which do not adequately comply with
Recommendations 1,5,10 and 13, and Special Recommendations II and IV which are considered as
core recommendations by FATF, and countries which do not significantly comply with other
recommendations in spite of complying with the core ones are subject to monitoring which is called
“regular follow-up”. In follow-up process, the relevant country submits, at the end of the second year
44
Follow-Up Report of Turkey in which Turkey’s progress over the deficiencies stated in the
Report would be discussed at FATF Plenary Meeting to be held in February 2009. In the
ongoing process, Turkey’s succeeding Follow-up Reports were discussed at the following
FATF Plenaries: Second Follow up Report in February 2010, the Third Follow-up Report at
the FATF Plenary in June 2011, the Fourth Follow-up Report at the FATF Plenary in
February 2011, the Fifth Follow-up Report at the FATF Plenary in June 2011, Sixth Follow-
up Report at FATF Plenary in October 2011, Seventh Follow-up Report at FATF Plenary in
February 2012, Eighth Follow-up Report at FATF Plenary in June 2011, and Ninth Follow-up
Report in October 2012.
In the FATF Plenary in June 2011 where the Fifth Follow-Up Report of Turkey was
discussed, it was decided that Turkey would be subject to enhanced follow-up as the Draft
Law on Prevention of The Financing of Terrorism was not enacted yet as committed in Action
Plan of Turkey3 and consequently the deficiencies regarding Special Recommendation II
which sets out terrorist financing offence and Special Recommendation III which sets out
freezing procedure regarding terrorist assets were not removed.
After the evaluation of the Seventh Follow-up Report of Turkey at the FATF Plenary of
February 2012, it was decided to schedule a high level visit to Turkey on grounds that Law on
Prevention of Financing of Terrorism adequately addressing Special Recommendation II and
III was not enacted and the visit was made on 21-22 May 2012 by a mission in which the
President and Deputy President of FATF also participated. At the FATF Plenary of October
2012 where Turkey’s Ninth Follow-up Report was discussed, it was decided to suspend
Turkey’s FATF membership unless the aforementioned Law was enacted until 22 February
2013 with provisions complying with FATF criteria.
4.2. TheProcess of “International CooperationReviewGroup (ICRG) in FATF -
TurkeyRelation
1. In G-20 Leaders Summit held in London on 2 April 2009, it was decided that FATF would
determine the risky countries in terms of anti-money laundering and terrorist financing and
take necessary measures in this respect.
2. It was decided in the G-20 Leaders Summit held in Pittsburgh on 20-25 September 2009
that FATF would publish a list until February 2010 on countries that it determined to be risky
in terms of anti-money laundering and terrorist financing.
following the adoption of mutual evaluation report in the Plenary Meeting, a “follow-up report” on
recommendations which have been assessed as inadequate. After the discussion of follow-up report at
the Plenary Meeting, if it is decided that the country has not made sufficient progress, the country is
put under an enhanced follow-up and in this scope, a sanction mechanism is applied. This sanction
mechanism may include submission of follow-up reports by the country within periods shorter than a
year (for example every four months), writing an official letter to relevant Minister explaining the
gravity of the situation, paying a high-level visit to the country for the same purpose, applying
Recommendation 21 which regulates relations with risky countries; and may go so far as terminating
the FATF membership. 3 Please refer to section of “International Cooperation Review Group (ICRG) in FATF-Turkey
Relations” for information on Action Plan.
45
3. The countries that were determined as risky according to the criteria4 set by FATF within
the scope of ICRG process were included in a pool of review and the countries under this
scope were divided into Africa-Middle East, America, Asia-Pacific and Europe-Eurasia
Regional Observation Groups based on their geographical location.
4. Turkey, having 9 partially complaint and 1 non-compliant ratings out of 16 core and key
principles according to the III-Round Mutual Evaluation Report of Turkey published by FATF
in 2007 and thus, having a total of 10 ratings that are either partially compliant or non-
compliant, was automatically referred to pool of review based on the referral criteria and was
included in the Europe-Eurasia Regional Review Group.
5. The review report drawn up in this scope stated that “the arrangements regarding the scope
and elements of the terrorist financing offence in the current legislation of Turkey are
deficient and insufficient, and there is not any arrangement with regard to freezing procedures
for terrorist assets.”
6. In order to remedy the deficiencies stated in the report, Turkey drew up an action plan and
submitted it to FATF on 18 January 2010. In the action plan; it was stated that a draft law
would be drawn up to remedy the deficiencies regarding terrorist financing and freezing
procedure, and that draft was expected to be sent to Turkish Great National Assembly until
June 2010 and become a law by the end of 2010.
7. In accordance with the action plan submitted to FATF; under the coordination of Ministry
of Justice, a draft law on terrorist financing was published by efforts of the authorities from
Ministries of Justice, Interior and Foreign Affairs, MASAK and Undersecretariat of Treasury,
and the scholars and the draft was sent to Prime Ministry by Ministry of Justice in June 2010.
8. Since some of the articles of the draft needed to be revised in legal and technical terms,
some amendments were made in the draft by the joint work of the authorities from Ministries
of Justice, Interior and Foreign Affairs, MASAK and Undersecretariat of Treasury, and the
scholars and the revised draft was sent by Ministry of Justice to the Prime Ministry on
20.12.2010. The Draft Law submitted to Turkish Great National Assembly by the Prime
Ministry on 01.02.2011 could not be enacted as the Turkish Great National Assembly was
closed in April 2011 due to general elections to be held in June 2011.
9. After Turkish Great National Assembly (TGNA) started its new legislative session on
01.10.2011, the concerning Draft Law was sent to TGNA once more on 21.10.2011.
4The criteria used for subjecting countries to a review process within the scope of ICRG are as follows:
a) being nominated by FATF or FATF Style Regional Bodies (FSRB),
b) automatic referral if, according to the Mutual Evaluation Report of the Country, the ratings of ten or more of the 16
Recommendations which are called “core” and “key” recommendations (Recommendation 1, 3, 4, 5, 10, 13, 23, 26, 35, 36, 40
andSpecial Recommendation I, II, III, IV and V) are partially compliant (PC) or non-compliant (NC),
c) automatic referral based on non-participation in FATF or FSRBs, or not agreeing to publish its Mutual Evaluation Report
46
10. In 2011 FATF Plenary Meeting held in Mexico in June, with regard to the Action Plan
Turkey submitted to FATF, it was decided that Turkey should be put into Public Statement5 as
the Draft Law was not enacted although one year passed after its commitment and for this
reason there were no progresses made.
11. The new legislative session of the TGNA started on 1 October 2011, and the Draft Law
which could not be enacted in the previous session was sent to TGNA on 21 October 2011 in
the new legislative session.
12. TGNA Justice Commission discussed the Draft Law on 22 March 2012 and decided to
refer it to sub-commission. The sub-commission discussed it on 17-18 April 2012 and made
some amendments. Upon the report by the sub-commission, the Justice Commission
concluded its general discussion on the Draft Law on 2 May 2012.
13. In line with the decisions made at the FATF Plenary in February 2012, a high-level
mission comprised of the FATF President, Secretariat and delegation of some member
countries visited Turkey on 21-22 May 2012 and held meetings with the Minister of Justice,
Minister of Finance, and members of the TGNA Justice Commission.
14. Meanwhile, the legislative session ended and the TGNA closed on 04 June 20012.
Therefore, the commission meetings where they discussed the Draft Law on the Prevention of
Financing of Terrorism on article basis could not be completed.
15. The first Plenary and Working Group meetings of FATF’s 24th
term were held in Paris on
15-19 October 2012. At the Plenary, it was noted that Turkey still had not enacted the Draft
Law on the Prevention of Financing of Terrorism which was promised in the action plan
submitted to FATF and therefore had not made enough progress, and it was decided to
suspend Turkey’s FATF membership unless the aforementioned Law passed until 22
February 2013 with provisions complying with FATF criteria.
4.3. Memorandums of Understanding (MOUs) SignedwithCounterpartInstitutions
Under the Article 12 of the Law No.5549, President of MASAK is authorized to sign the
memoranda of understanding, which are not in the nature of international agreement, with
foreign counterparts and to amend the memoranda of understanding signed in order to ensure
exchanging information within the scope of duties of the Presidency and the signed
memoranda of understanding and their amendments enter into force by the Decision of
Council of Ministers.
In this framework, MOUs were signed with the financial intelligence units of the following
countries.
5 Public Statement is a document that FATF publishes the list of ;jurisdictions subject to a FATF call on its members and other jurisdictions to apply countermeasures to protect the international financial system from the on-going and substantial money laundering and terrorist financing (ML/TF) risks emanating from the jurisdictions (1.group list)and jurisdictions with strategic AML/CFT deficiencies that have not made sufficient progress inaddressing the deficiencies or have not committed to an action plan developed with the FATF to address the deficiencies (2. Group list).These jurisdictions are; 1. group: Iran and North Korea, 2.group: Cuba, Bolivia, Ethiopia, Kenya, Myanmar, Nigeria, Sao Tome and Principe, Sri Lanka, Syria and Turkey.
47
● In 2006; Turkish Republic of Northern Cyprus
● In 2007; Indonesia, Portugal and Sweden
● In 2008; Mongolia, Afghanistan, Georgia, Albania, Syria and Romania
● In 2009; Croatia, Macedonia, South Korea and Bosnia Herzegovina
● In 2010; Japan, Ukraine, Norway, Jordan, Senegal and Luxembourg
● In 2011; Belarus, United Kingdom, Canada, Monaco, Finland, Australia
● In 2012; USA, Holland, Belgium, Poland, Malaysia, Kosovo, Russia Federation, Republic
of The Philippines.
4.4. MeetingsAbroad
MASAK participated in the following meetings held abroad in 2012:
●Plenary and working group meetings held in Paris by FATF for reviewing
Recommendations.
●ICRG (International Cooperation Review Group) meeting held in Paris by FATF.
●ECO (Economic Cooperation Organization) Experts Meeting held in Teheran by ECO.
●Seminar on “Conflict of Interest in Combating Corruption” held in Brussels by TAIEX.
●Meeting on “Combating Money Laundering and Financing of Terrorism” held in Vienna by
OSCE.
●2012 February plenary and working group meetings held in Paris by FATF.
●Meeting on “Proceeds of Crime and Money Flow through Internet” held in Kiev (Ukraine)
by European Council.
●Meeting held in Paris by “Task Force on Tax Crimes and Other Crimes” TFTC-OECD.
●Meeting on “Construction of Asset Recovery Unit” held in Warsaw by TAIEX.
●Meeting on “Determinations and Suggestions relating to Asset Recovery Unit” held in
Wiasbaden (Germany) by TAIEX.
● Meeting on “Determinations and Suggestions relating to Asset Recovery Unit” held in
London by TAIEX.
●Seminar on “Confiscation and Recovery of Assets” held in Jakarta (Indonesia) by UN and
Asia Pacific Group.
●Meeting held in Rome by OECD Tax Crimes and Other Crimes Forum.
●Plenary and working group meetings held in Moscow by FATF and Eurasia Group.
48
●Meeting on “Laundering, Search, Seizure and Confiscation of Proceeds from Crime” held in
Strasbourg by European Council.
●2012 June Plenary and working group meetings held in Rome by FATF.
●Workshop on “Finance related to criminal organizations performing organized migrant
smuggling through Turkey and Southeast Mediterranean” held in Greece.
●Conference on “Tax Fraud and Money Laundering-legislative Regulations and Positive
practices” held in Tbilisi by TAIEX.
●Plenary and working group meetings held in St. Petersburg (Russia) by Egmont Group.
●Meeting on “Combating Money Laundering and Financing of Terrorism” held in Postdam
(Germany) by East Germany Banking Union.
●Regional seminar related to “Determination and Recovery of Stolen Assets” held in Vienna
by OSCE.
●Meeting on “Recovery of Assets” held in Doha (Qatar) by G8-Deauville Common Platform.
●ICRG meeting held in Paris by FATF.
●Meeting held in London by General Directorate of Security Boğaziçi Working Group.
●Plenary and working group meetings held in New Delhi (India) by Eurasia Group.
●Meeting on “The Last Developments, EU Standards, International Cooperation in
Combating Human Trafficking and Experiences of Member Countries” by TAIEX.
●Training programme on “Customer Identification, Customer Due Diligence Principles,
Suspicious Transaction Reporting in Preventing Laundering Proceeds of Crime and New
FATF Recommendations” held in Nicosia by The Central Bank of TRNC .
●Training programme on “Financing of Terrorism” held in Washington by USA Federal
Bureau of Investigation.
●Information and Communication Technologies Fair held in Frankfurt by HD Discover.
●Meeting on “Russia-Turkey Consultations on Combating Terrorism” held in Moscow by
Ministry of Foreign Affairs.
5. Training
andInformingActivitiesandOtherActivitiesforIncreasingPublicAwareness
Execution by obliged parties of preventive measures introduced with regard to anti-money
laundering and terrorist financing is very important in terms of revealing and preventing the
laundering acts, and preventing the use of financial system as an instrument in commission of
these crimes. In order to increase obliged parties’ awareness of preventive measures and
ensure that they implement these measures, MASAK carries out training activities for obliged
parties. Furthermore, the activities for ensuring cooperation and coordination between
49
regulatory and supervisory bodies participating in combating terrorist financing and the law
enforcement bodies and activities for informing examiners continue to be carried out
intensely.
Information regarding the training activities for obliged parties and other public institutions
and for Finance experts and assistant experts given by MASAK in 2012 is stated below.
5.1. In-houseTrainings
A “Basic Training” program was held between 13.02.2012-20.04.2012 for newly recruited
XV. Term Finance Assistant Experts. In the scope of the training program, experts from
relevant institutions trained the assistant experts on issues of anti-money laundering and
terrorist financing legislation, banking, foreign exchange, capital markets, tax and customs
legislation, and criminal and commercial law. 15 assistant experts received a total of 4185
hours of training within the scope of the mentioned training program.
Within the scope of new planning realized in MASAK in 2012, a total of 396 hours of
training was given to 11 technical staff acting in “Information Technologies and
Communication Group” between 29.04.2012-05.05.2012.
Within the scope of “Plan and Application Principles of 2012 In-house Training”, a total of
660 hours of “Training concerning Adaptation to Changes” was given to 22 people comprised
of 14 Finance Experts, 4 Assistant Finance Experts, 3 Data Preparation and Control Operators
and 1 Tax Inspector between 21-25.05.2012; a total of 3480 hours of “IFIS-Integrated
Financial Intelligence System” and “Brushing up Training” was given to 104 people
comprised of 45 Finance Experts, 36 Assistant Finance Experts, 4 Tax Inspector, 12 Revenue
Experts, 3 Chief, 11 Data Preparation and Control Operators, 2 programmer, 1 Engineer and 1
statisticians in two periods between 5-10.11.2012 and 11-16.11.2012.
5.2. Training ActivitiesforObligedPartiesandOtherPublicInstitutions
Activities for training the personnel of financial institutions and other obliged parties about
anti-money laundering and terrorist financing obligations introduced by Law No. 5549 and
related secondary legislation continued intensely in 2012 as well.
In this scope, MASAK provided training on AML/CFT obligations in Ankara and Istanbul for
financial leasing companies, Istanbul Stock Exchange, courier companies, The Central Bank
of The Republic of Turkey, Development Bank of Turkey and General Directorate of Post.
Besides, training for trainers programme was provided to the authorities of insurance
companies, capital market intermediary institutions, factoring and financial leasing
companies. MASAK also carried out training activities for relevant law enforcement units
involved in the fight against money laundering and terrorist financing.
Additionally, MASAK provided trainings including its experiences and knowledge for the
authorities of Turkmenistan in order to make contributions to the creation of necessary
institutional and legal infrastructure in combating laundering and terrorist financing.
50
Within the scope of studies carried out for the purpose of making the suspicious transaction
reporting system more efficient, a workshop was held in Istanbul in order to introduce and
evaluate the “MASAK.ONLINE” System established with the redevelopment of existing e-
STR system for the compliance officers and authorities of banks.
In this scope, information on training activities provided in 2012 by MASAK is given below.
Table 29– Training and Information Activities (2012)
The Agencies
Participated in
Training
Activities
Number of
Training
Activities
Training Hours Number of
Trainers
Number of
Participants
Obliged Parties 10 72 18 413
Law Enforcement
Units 11 31 14 509
Examiners 3 16 3 61
Other
2 20 5 212
Total 26 139 40 1.195
6. Information Technologies andCommunicationActivities
MASAK considerably carries out its duties and activities in the scope of the Law No.5549
based on information systems.
MASAK Information Systems Strategy is comprised of steps as vision determination,
planning necessary activities and putting the planned activities into effect. Within the scope of
concerning strategic vision studies, it is necessary to discuss continuously the information
systems activities with reengineering understanding, to determine the other FIU samples in
the world relating to information technologies, to take into consideration the implementations
in the form of international recommendations concerning EU Acquis and FATF standards, to
examine the structure of the information systems in the other public institutions in Turkey and
the technologic and academic developments in this field and to carry out the studies in
continuance.
51
As the result of the analysis of requirements conducted in 2011, it has emerged that MASAK
information systems should be re-established paying regard to principles such as
“uninterrupted service”, easy management” and “efficient use of system resources” in
accordance with National Plans and Programs, e-Transformation Turkey Project and
Information Society Strategy. Accordingly, “Enhancement Program of Administrative
Capability” and “MASAK IT Modernization Program” has been prepared and started to be
implemented in 2012.
6.1. Enhancement Program of AdministrativeCapability
Under the program, it was targeted that MASAK information systems would use the modern
technology effectively and intensively, would have a simpler structure in comparison with the
current system ensuring high performance, would be easy to be managed administratively and
would have cost-efficient IT processes.
Within this scope, “Information Technologies and Communication Group” has been
established for carrying out the activities more healthy such as project designing, project
execution and institutional development activities. The activities which were previously
carried out within the framework of development activity of IT governance model through
Directorate of Information Processing have been started to be executed within the new
established “Group of Information Technologies and Communication”.
Within the scope of the program, trainings on information system management models have
been taken with the participation of institution management, domain experts and technical
team. In the framework of these activities, the management models commonly adopted by the
other public institutions’ IT departments have been examined and as a result it is considered
to be suitable to redesign MASAK IT Center in the model of “Matrix Organization Structure”
which is a modern management model. The job definitions of each unit in the organization
have been redefined in parallel with the newly established infrastructure.
52
6.2. MASAK IT Modernization Program
“MASAK IT Modernization Program” is consisted of a
range of projects designed with the concept of
reengineering. The main target of the program is to
develop an integrated information system which will
carry out more effectively the process of combating
money laundering and terrorist financing together with
the counterpart institutions. MASAK realizes its e-
transformation with the “IT Modernization Program” in
line with e-state strategy. In this way, an integrated
platform has been developed which can be entirely
managed in electronic environment for the working
processes carried out together with the national and
international counterparts.
Within the scope of Modernization Program, two projects have been developed under the
name of MASAK IT Systems Modernization (Modernization Project) and Efficiency in
Combating Money Laundering and Terrorist Financing
(Harmonisation Project).
Modernization Project is carried out under five different
components. The main activities as of components are;
Modernization of MASAK Data Center, Software
Development Services, Analysis Systems and Business
Intelligence Implementations, Certification and Security
Control Services, Business Continuity and Installation
of Disaster Recovery Center.
The Harmonization Project is composed of the
components twinning and investment and targeted to
harmonise with its counterparts by increasing the legal, administrative and technical capacity
of MASAK.
With the Project supported with EU co-finance in the scope of 2012 Financing Agreement, it
is targeted to harmonize the business process possessed within the scope of Modernization
Mission of Program
To make the processes of
combating money laundering and
terrorist financing more effective,
quick and reliable
To ensure reliability of financial
system
To contribute to national security
To contribute to strengthen of
economy
Vision of Program
To establish a modern and reliable
information and communication
system which will strengthen the
process of collecting and analyzing
of financial data and disseminating to
the relevant units
53
Project activities and data processing capabilities with the sample systems implemented and
showed parallelism in counterparts in EU member countries and organizations, by this means
to make more efficient the combating period with laundering proceeds of crime and terrorist
financing.
In 2012, within the scope of Modernization Program; modernization of data centre, the large
part of software development activities and modernization of security infrastructure activities
have been completed. Development activities of the analysis systems and business
intelligence implementations, establishment of business continuity and disaster recovery
centre are planned to be performed in 2013.
Within this scope, the activities carried out under the name of Modernization Program by
Information Technologies and Communication Group have been summarized as follows:
Modernization of Data Centre: The activity of “Modernization of MASAK Data Centre”
which is the first component of multi-annual investment project “Modernization of MASAK
Information Systems” has been completed as of October 2012. Under the component, the
hardware, shelfware, network infrastructure of MASAK Information Systems have been
established using new technologic systems, the systems have been redesigned in redundant
architecture as required by modern buildings and the technical infrastructure has been set up
relating to new electronic suspicious transaction reporting system.
Integrated Financial Intelligence System (EMİS):
Within software development framework,
institutional software was designed taking
modern technological developments into
attention and institutional modules were
redeveloped at first at the rate of available
capacities. The most important output of
these activities has been the Integrated
Financial Intelligence System (EMİS).
EMİS, which is a system ensuring integration with other public institutions, has been
developed with the understanding of reengineering parallel to the information society
strategy. Furthermore, EMİS led to automation of collection, integration and analysis
processes of the data which are the steps of financial intelligence process.
The medium and long term outcome of EMİS for our country will be conducting faster,
higher quality and more reliable AML/CFT activities.
MASAK.ONLINE System: MASAK.ONLINE system has been built up for ensuring that
obliged parties send STRs and their annexes in electronic environment. With
54
MASAK.ONLINE system, which was developed in the scope of BT Modernisation Program,
the online STR system which was used only by the banks formerly has now been open to all
obliged parties. In other words, all natural and legal persons acting in sectors linked to
financial transactions will be able to send online STRs by signing up the MASAK.ONLINE
System.
Modernisation of Security Infrastructure: In 2012, Modernisation of Information System
Security Infrastructure was completed under the scope of Modernisation Project; and the
technical infrastructure required for the security audit to be carried out with TÜBİTAK and
for ISO 27001 information security management system certification.
C. PerformanceResults
1. Table on PerformanceResults
The tables relating to realization value of MASAK performance indicators stated in
2012 Ministry of Finance Performance Program are as follows.
55
Year
Unit
Performance Target
1. Quarter 2. Quarter 3. Quarter 4. Quarter
4,50 6,00 7,50 9,00 7,50 7,50 33,33 -66,67 Not attained
6,00 6,00 6,00 6,00
0,00 1,50 1,50 1,50
0,00 0,00 1,50 1,50
0,00 0,00 0,00 -1,50
Year-end
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target(%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing.
Reason of Deviation
Completion Period of Evaluations regarding
Laundering Offence (Month)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruption and unregistered economy
To prevent laundering proceeds of crime and terrorist financing
Degree of Attaining
the TargetTarget
Realized
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be taken against Deviation
Although the evaluation period regarding laundering offence does not show the efficiency in combating offence alone, the shortness of this period
will shorten the period of criminal investigation in total. In this scope, the coompletion of period evaluations relating to laundering offence has been
specified as performance indicator.
Evaluation and Analyzing Group
Deviation in target has been observed thanks to expansion of files with new findings and late arrival of information requested from other public
institutions.
Definition
Source of Indicator
Analysis of Performance Results
-4,00
-2,00
0,00
2,00
4,00
6,00
8,00
10,00
1 2 3 4
Performance Realization in Quarterly Periods
1. Quarter 2. Quarter 3. Quarter 4. Quarter
4,50
7,50
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
Target Year-end Realization
Performance Target - Year-End Realization
56
Year
Unit
Performance Target
1. Quarter 2. Quarter 3. Quarter 4. Quarter
9.000,00 3.758,00 7.896,00 11.401,00 15.318,00 15.318,00 170,20 70,20 Target Exceeded
3.758,00 3.758,00 3.758,00 3.758,00
0,00 4.138,00 4.138,00 4.138,00
0,00 0,00 3.505,00 3.505,00
0,00 0,00 0,00 3.917,00
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be taken against Deviation
One of the most important activities within the scope of prevention of laundering proceeds of crime and terrorist financing is to receive, analyze
and evaluate STRs received. For this reason, the number of STRs received is specified as performance indicator. However, when examining 2010
data, it was seen that only 3 of the STRs among sent 10.251 STRs were assessed to be requiring denunciation. For this reason, as of 2011, the
issues were concentrated on sending reports, relating to same subjects, in the same one without seperating them, filling in form fields in the
standart format and properly. Although the target for the number of suspicious transaction report is aimed lower than the other years, ensuring
sending of the reports properly is targeted.
Data Analysis Group
The number of STRs sent electronically were 13.759 among 15.318 STRs in 2012. Implementation of electronic transmission of suspicious
transaction was primarly used in banking sector by MASAK and %99.9 of the suspicious transaction reports conveyed to MASAK in 2012 were
transmitted electronically. As it is secure, fast and easy to send the reports electronically, it also contributes to the increase in the number of
reports in banking sector.
Definition
Source of Indicator
Analysis of Performance Results
Reason of Deviation
Number of STRs Received (Number)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruprtion and unregistered economy
To prevent laundering proceeds of crime and terrorist financing
Degree of Attaining
TargetTarget
Realized Year-end
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target (%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing.
0,002.000,004.000,006.000,008.000,00
10.000,0012.000,0014.000,0016.000,0018.000,00
1 2 3 4
Performance Realization in Quarterly Periods
1. Quarter 2. Quarter 3. Quarter 4. Quarter
9.000,00
15.318,00
0,00
2.000,00
4.000,00
6.000,00
8.000,00
10.000,00
12.000,00
14.000,00
16.000,00
18.000,00
Target Year-end Realization
Performance Target - Year-End Realization
57
Year
Unit
Performance Target
1. Quarter 2. Quarter 3. Quarter 4. Quarter
10.000,00 2.500,00 5.126,00 5.126,00 8.606,00 8.606,00 86,06 -13,94 Not attained
2.500,00 2.500,00 2.500,00 2.500,00
0,00 2.626,00 2.626,00 2.626,00
0,00 0,00 0,00 0,00
0,00 0,00 0,00 3.480,00
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be taken against Deviation
Although the trainings arranged by MASAK within the scope of 2012 on-the-job training plan are carried out in May, June, September and
October, they may be carried out in other months of the year in case of needs. Additionally, participation is also provided to the trainings organized
by MAYEM (Finance Training Center of Ministry of Finance).
Training Group
Spring term on-the-job trainins were arranged for less than the number of planned personnel
Definition
Source of Indicator
Analysis of Performance Results
Reason of deviation
Trainings for development of profession and
legislation knowledge for meeting the institutional
and personal needs of personnel (man*hour)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruption and unregistered economy
To prevent laundering proceeds of crime and terrorist financing
Degree of Attaining
TargetTarget
Realized Year-end
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target (%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing.
0,001.000,002.000,003.000,004.000,005.000,006.000,007.000,008.000,009.000,00
10.000,00
1 2 3 4
Performance Realization in Quarterly Periods
1. Quarter 2. Quarter 3. Quarter 4. Quarter
10.000,00
8.606,00
7.500,00
8.000,00
8.500,00
9.000,00
9.500,00
10.000,00
10.500,00
Target Year-end Realization
Performance Target- Year-End Realization
58
Year
Unit
Performance Target
1. Quarter 2. Quarter 3.Quarter 4. Quarter
5.000,00 0,00 0,00 0,00 -100,00 Target not Attained
0,00 0,00 0,00 0,00
0,00 0,00 0,00 0,00
0,00 0,00 0,00 0,00
0,00 0,00 0,00 0,00
Year-End
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target (%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing.
Reason of Deviation
Number of persons received e-learning for obliged
parties (Number)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruption and unregistered economy
To prevent laundering proceeds of crime and terrorist financing
Degree of Attaining
TargetTarget
Realized
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be taken against Deviation
It is aimed to monitor the number of persons participated to the e-learning studies for obliged parties.
Trainig Group
Target could not be attained as the infrastructure of e-learning program was not completed in 2012.
Definition
Source of Indicator
Analysis of Performance Results
0,000,100,200,300,400,500,600,700,800,901,00
1 2 3 4
Performance Realization in Quarterly Periods
1. Quarter 2. Quarter 3.Quarter 4. Quarter
5.000,00
0,000,00
1.000,00
2.000,00
3.000,00
4.000,00
5.000,00
6.000,00
Target Year-End Realization
Performance Target - Year-End Realization
59
Year
Unit
Performance Target
1.Ouarter 2. Ouarter 3. Ouarter 4. Ouarter
3,00 1,00 2,00 2,00 3,00 3,00 100,00 0,00 Target Achieved
1,00 1,00 1,00 1,00
0,00 1,00 1,00 1,00
0,00 0,00 0,00 0,00
0,00 0,00 0,00 1,00
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be taken against Deviation
Within this scope, workshops will be carried out with the participation of MASAK and examiners in order to ensure effective cooperation with
supervision units and law enforcement units.
Training Group
Target effectively attained
Definition
Source of Indicator
Analysis of Performance Results
Reason of Deviation
Number of workshops carried out for supervision units
(Unit)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruption and unregistered economy
To prevent laundering proceeds of crime and terrorist financing
Defree of Attaing
TargetTarget
Realized Year-end
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target (%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing.
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
1 2 3 4
Performance Realization in Quarterly Periods
1.Ouarter 2. Ouarter 3. Ouarter 4. Ouarter
3,00 3,00
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
Target Year-end Realization
Performance Target - Year-End Realization
60
Year
Unit
Performance Target
1. Quarter 2. Quarter 3.Quarter 4. Quarter
90,00 75,00 87,50 85,00 87,50 87,50 97,22 -2,78 Target not Attained
75,00 75,00 75,00 75,00
0,00 12,50 12,50 12,50
0,00 0,00 -2,50 -2,50
0,00 0,00 0,00 2,50
Year-End
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target (%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing.
Reason of Deviation
Number of files brought to trial/Number of files
denounced (%)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruption and unregistered economy
To prevent laundering proceeds of crime and terrorist financing
Degree of Attaining
the TargetTarget
Realized
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be taken against Deviation
It defines the number of denunciations brought to trial in laundering offences. This ratio is desired to be % 100. This situation means that the public
prosecutors and the courts find the denouncement reports adequate to bring lawsuit.
Examination Group
24 files were denounced and also lawsuits regarding 21 files were brought in 2012.
Definition
Source of Indicator
Analysis of Performance Results
-20,00
0,00
20,00
40,00
60,00
80,00
100,00
1 2 3 4
Performance Realization in Quarterly Periods
1. Quarter 2. Quarter 3.Quarter 4. Quarter
90,00
87,50
86,00
86,50
87,00
87,50
88,00
88,50
89,00
89,50
90,00
90,50
Target Year-End Realization
Performance Target - Year-End Realization
61
Year
Unit
Performance Target
1. Quarter 2. Quarter 3. Quarter 4. Quarter
1,00 1,00 1,00 1,00 1,00 1,00 100,00 0,00 Target Achieved
1,00 1,00 1,00 1,00
0,00 0,00 0,00 0,00
0,00 0,00 0,00 0,00
0,00 0,00 0,00 0,00
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be taken against Deviation
The evaluations carried out relating to reportings on violation of obligations received within the organization or from outside the organization under
Regulation on Measures are desired to be completed in a resonable period of time. Especially as the result of the evaluation, if the case is decided
to be submitted to examiners stated in Law No.5549 in order to be subject to inspection of obligations and as the result of the inspection if any
acts against obligations are determined which administrative penalty should be applied, it is necessary to act immediately as the lapse of time for
admimistrative fine is 3 years. Within this scope, the evaluation period relating to violation of obligation is determined as performance indicator.
Inspection of Obligations Group
Target effectively achieved
Definition
Source of Indicator
Analysis of Performance Results
Reason of Deviation
Evaluation Period regarding Violation of Obligation
(Month)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruption and unregistered economy
To prevent laundering proceeds of crime and terrorist financing
Degree of Attaining
the TargetTarget
Realized Year-End
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target(%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing.
0,00
0,20
0,40
0,60
0,80
1,00
1,20
1 2 3 4
Performance Realization in Quarterly Periods
1. Quarter 2. Quarter 3. Quarter 4. Quarter
1,00 1,00
0,00
0,20
0,40
0,60
0,80
1,00
1,20
Target Year-End Realization
Performans Target - Year-End Realization
62
Year
Unit
Performance Target
1. Quarter 2. Quarter 3. Quarter 4. Quarter
14,00 12,00 11,00 14,00 14,00 100,00 0,00 Target Attained
0,00 0,00 0,00 0,00
0,00 12,00 12,00 12,00
0,00 0,00 -1,00 -1,00
0,00 0,00 0,00 3,00
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be taken against Deviation
It is desired to complete the evaluations, relating to referrals and reports received on terrorist financing offences, by preparing a report in the
shortest possible time. Within this scope, for the evaluation reports drafted as the result of the correspodances caried out both with public
institutions and obliged parties in order to obtain information and documents regarding the natural/legal person on whom evaluation is carried out,
the 2012 performance target has been determined as 14 months for terrorist financing evaluations.
Analysis and Evaluation Group on Terrorist Financing
Target effectively attained
Definition
Source of Indicator
Analysis of Performance Results
Reason of Deviation
The completion period of evaluations relating to
terrorist financing offence (Month)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruption and unregistered economy
To prevent laundering proceeds of crime and terrorist financing
Degree of Attaining
the targetTarget
Realized Year-End
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target (%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing.
-2,00
0,00
2,00
4,00
6,00
8,00
10,00
12,00
14,00
16,00
1 2 3 4
Performance Realization in Quarterly Periods
1. Quarter 2. Quarter 3. Quarter 4. Quarter
14,00 14,00
0,00
2,00
4,00
6,00
8,00
10,00
12,00
14,00
16,00
Target Year-End Realization
Performance Target- Year-End Realization
63
Year
Unit
Performance Target
1. Quarter 2. Quarter 3. Quarter 4. Quarter
5,00 2,00 4,00 6,00 8,00 8,00 160,00 60,00 Target Exceeded
2,00 2,00 2,00 2,00
0,00 2,00 2,00 2,00
0,00 0,00 2,00 2,00
0,00 0,00 0,00 2,00
Year-End
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target (%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing
Reason of Deviation
Number of MOUs signed (Number)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruption and unregistered economy
To prevent laundering proceeds of crime and terrorist financing
Degree of Attaining
TargetTarget
Realized
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be Taken against Deviation
The increase in the number of countries with which MOUs signed also increases the cooperation between countries regarding money laundering
and terrorist financing offences holding cross-border characteristics and facilitates combating with these offences. Within this scope, the number of
signed memorandum of understandings have been determined as performance indicator.
Foreign Relations Group
The positive progress in mutual negotiations with countries and rapid processing in signing period of MOUs
Definition
Source of Indicator
Analysis of Performance Results
0,001,002,003,004,005,006,007,008,009,00
1 2 3 4
Performance Realization in Quarterly Periods
1. Quarter 2. Quarter 3. Quarter 4. Quarter
5,00
8,00
0,00
1,00
2,00
3,00
4,00
5,00
6,00
7,00
8,00
9,00
Target Year-End Realization
Performance Target - Year-End Realization
64
Year
Unit
Performance Target
1. Quarter 2. Quarter 3. Quarter 4. Quarter
2,00 1,00 3,00 4,00 4,00 4,00 200,00 100,00 Target Exceeded
1,00 1,00 1,00 1,00
0,00 2,00 2,00 2,00
0,00 0,00 1,00 1,00
0,00 0,00 0,00 0,00
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be Taken against Deviation
Drafting of general analysis report relating to suspect person, organization and sector through conducting general analysis studies on at least one
subject per year. When performing analysis on mass data, it is targeted to use efficiently the relevant software, to import properly and quickly the
data in standard format and by this means to ensure the information flow with relevant units within the institution and outside the institution on risky
persons and organizations.
General Analysis Group
The expansion in working areas and the changes in the number and quality of workings depending on new data
Definition
Source of Indicator
Analysis of Performance Results
Reason of Deviation
Conducting general analysis studies and report
preparation (Number)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruption and unregistered
To prevent laundering proceeds of crime and terrorist financing
Degree of Attaining
TargetTarget
Realized Year-End
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target (%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing.
0,000,501,001,502,002,503,003,504,004,50
1 2 3 4
Performance Realization in Quarterly Periods
1. Quarter 2. Quarter 3. Quarter 4. Quarter
2,00
4,00
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
4,00
4,50
Target Year-End Realization
Performance Target - Year-End Realization
65
Year
Unit
Performance Target
1. Quarter 2. Quarter 3. Quarter 4. Quarter
25,00 6,00 12,00 14,00 24,00 24,00 96,00 -4,00 Not Attained
6,00 6,00 6,00 6,00
0,00 6,00 6,00 6,00
0,00 0,00 2,00 2,00
0,00 0,00 0,00 7,00
Year-end
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target (%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing.
Reason of deviation
Number of Trainings for Obliged Parties and other
public administrations (Number)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruption and unregistered economy
To prevent laundering proceeds of crime and terrorist financing
Degree of attaining
TargetTarget
Realized
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be taken against Deviation
The number of training programs arranged for enhancing the awareness of personnel of obliged parties on obligations known as the measures in
combating prevention of laundering proceeds of crime and terrorist financing is determined as performance indicator.
Training Group
The training programs of certain obliged parties are postponed to 2013 as the reports of obligation inspection were submitted to MASAK by the
end of 2012.
Definition
Source of Indicator
Analysis of Performance Results
0,00
5,00
10,00
15,00
20,00
25,00
1 2 3 4
Performance Realization in Quarterly Periods
1. Quarter 2. Quarter 3. Quarter 4. Quarter
25,00
24,00
23,40
23,60
23,80
24,00
24,20
24,40
24,60
24,80
25,00
25,20
Target Year-end Realization
Performance Target-Year-End Realization
66
Year
Unit
Performance Target
1. Quarter 2. Quarter 3. Quarter 4. Quarter
182,00 181,00 181,00 181,00 181,00 99,45 -0,55 Target not Attained
0,00 0,00 0,00 0,00
0,00 181,00 181,00 181,00
0,00 0,00 0,00 0,00
0,00 0,00 0,00 0,00
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be taken against Deviation
The obliged parties (deposit and participation banks, capital market intermediaries, insurance and pension companies and PTT with limited
banking operations) required to establish compliance programs shall be subject to off-site inspection by means of receiving and evaluating the
numeric data relating to training and internal audit activities performed within the year. As the result of this inspection, the obliged parties deemed
insufficient in terms of training and internal audit activities may be taken within the scope of inspection of obligation compliance the following year
according to the evaluationto be carried out. In this way, compliance of obliged parties with obligations will be ensured through off-site inspection.
Inspection of Obligation Group
One intermediary institution ceased its operations in 2012.
Definition
Source of Indicator
Analysis of Performance Results
Reason of Deviation
Number of obliged parties to be subject to off-site
inspection for training and internal audit activities
(Number)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruption and unregistered economy
To prevent laundering proceeds of crime and terrorist financing
Degree of Attaining
TargetTarget
Realized Year-end
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target (%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing.
0,0020,0040,0060,0080,00
100,00120,00140,00160,00180,00200,00
1 2 3 4
Performance Realization in Quarterly Periods
1. Quarter 2. Quarter 3. Quarter 4. Quarter
182,00
181,00
180,40
180,60
180,80
181,00
181,20
181,40
181,60
181,80
182,00
Target Year-end Realization
Performance Target - Year-End Realization
67
Year
Unit
Performance Target
1. Quarter 2. Quarter 3. Quarter 4. Quarter
2,00 3,00 3,00 150,00 50,00 Target Exceeded
0,00 0,00 0,00 0,00
0,00 0,00 0,00 0,00
0,00 0,00 0,00 0,00
0,00 0,00 0,00 0,00
MONITORING REPORT ON PERFORMANCE INDICATOR REALIZATION
Measures to be taken against Deviation
Typologies that include the methods and techniques used in laundering proceeds of crime and terrorist financing and also the new trends emerged
in these offences will ensure the increament of awareness of obliged parties and other relevant public institutions.
Legislation and Coordination Group
Target effectively attained.
Definition
Source of Indicator
Analysis of Performance Indicator
Reason of Deviation
Number of Typologies Published (NmberAdet)
Strategic Purpose
Strategic Target
Performance Indicator
To prevent offence economy, corruption and unregistered economy
To prevent laundering proceeds of crime and terrorist financing
Degree of Attaining
the TargetTarget
Realized Year-End
Realization
Realization
Ratio of Target
(%)
Deviation Ratio
of Target (%)
2012
12.00.35.00 / MASAK
Efficiency will be provided in combating offences of laundering proceeds of crime and terrorist financing.
2,00
3,00
0,00
0,50
1,00
1,50
2,00
2,50
3,00
3,50
Target Year-End Realization
Performance target - Year-End Realization
68
2. Evaluation of PerformanceResults
Year
Unit
3 3 7 0
No Performance Indicator TargetYear-End
Realization
Target
Exceeded
Target
Attained
Target Not
Attained
Data could not
be Obtained
1 Number of STRs received (Number) 9.000,00 15.318,00 n
2 Number of MOUs signed (Adet) 5,00 8,00 n
3 Number of files brought to trial/number files denounced (%) 90,00 87,50 n
4Completion period of evaluations regarding laundering
offence (Month)4,50 7,50 n
5Completion period of evaluations regarding terrorist financing
offence (Month)14,00 14,00 n
6 Number of Typologies published (Number) 2,00 3,00 n
7Number of training programs for obliged parties and other
public institutions (Number)25,00 24,00 n
8Conducting general analysis studies and report preparation
(Number)2,00 4,00 n
9Number of obliged parties to be subject to off-site inspection
for training and internal audit activities (Number)182,00 181,00 n
10 Evaluation period for obligation violations (Month) 1,00 1,00 n
11Number of persons received e-learning for obliged parties
(Number)5.000,00 0,00 n
12 Number of workshops carried out for supervision units (Unit) 3,00 3,00 n
13
Trainings for development of profession and legislation
knowledge for meeting the institutional and personal needs
of personnel (man*hour)
10.000,00 8.606,00 n
DISPERSION OF REALIZATION VALUE OF PERFORMANCE INDICATORS ACCORDING TO THEIR DEGREE OF ATTAINING TARGET
2012
12.00.35.00 / MASAK
31%
23%46%
0%
Target Exceeded Target Attained Target Not Attained Data could not be Obtained
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3. Evaluation of Performance Information System
In 2012, realization values of MASAK’s performance indicators were processed as quarterly
periods into the performance budget monitoring and evaluation module of the Finance SGB.net
system.
V. ASSESSING INSTITUTIONAL CAPABILITY AND CAPACITY
A. Analysis of StrongandImprovableQualifications, Opportunities and Threats (GZFT
Analysis)
The following table gives information about strong and improvable qualifications, and the threats
faced by MASAK while performing its activities.
Table 30– GZFT Analysis
Strong Qualifications
Having a decisive and regulatory role in defining policies for anti-money laundering
purposes and preparation of the legislation in the framework of the defined policies
Having the opportunity of carrying out examination of money laundering offence and
supervision of obligations functions through examiners assigned provisionally by
MASAK
Having the power of signing memoranda of understanding, which are not in the nature
of international treaties, for the purpose of ensuring exchange of information and
documents with international counterparts
Having an experienced group of administrators
Having qualified specialised staff
Having a developed information technology infrastructure
Improvable Qualifications
Inadequate physical facilities
The obligation of employing provisional staff
Carrying out examination of money laundering offence and supervision of obligations
functions through examiners who are not MASAK staff
Opportunities
Its field of function is suitable for international cooperation
Providing trainings for MASAK staff
Threats
Waste of time because of late and deficient responses to information requests sent by
MASAK
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Having more difficulty in examining and following money laundering offences due to
the high volume of unrecorded economy
Difficulty in defining the nature of financial transactions made by or through the
neighbouring countries because of their financial instability
Difficulties in cooperation and coordination because there are more than one
professional field in investigation of offences
VI. CONCLUSION
As the financial intelligence unit of Turkey MASAK carries out regulating, coordination,
supervision and training activities charged to it upon the Law No. 5549 beside the functions of
collecting data, analysing and forwarding to related bodies. Following a busy schedule MASAK
fulfilled all the priority functions determined in line with strategic objectives and goals found in
2013-2017 Strategic Plan of the Ministry of Finance and 2012 Performance Program.
Training programs for obliged parties and the related law enforcement bodies in AML/CFT field
went on in 2012. 1195 participants were trained in 26 training activities throughout the year.
As a result of the workshops and trainings organised in 2012 for the purpose of achieving a more
active STR system and evaluating supervision of obligations, the number of non-bank financial
institutions which sent STRs increased more than the previous year and reached 108 from 91.
The number of STRs received from these institutions which was 585 in 2011 increased to 1450 in
2012.
Thanks to the new application of STR system launched in 2012 99.7% of 13801 STRs received
from the banking sector was sent electronically, and the number STRs from this sector increased
by 61% with respect to the previous year and reached 15318. Shortly, the “electronic suspicious
transaction reporting” application launched in 2012 led to an accountable increase in the number
of STRs due to the fact that sending STRs electronically is secure, fast and easy.
The activities carried out previously under the Directorate of Information Processing Centre are
now performed by the newly structured “Information Technologies and Communication Group.”
The most important outcomes of the activities carried out under the scope of IT field in 2012 are
the Integrated Financial Intelligence System (EMIS) and the MASAK.ONLINE system.
Solutions previously created by integrating software with different capacities and nature have
been displaced with unique software which were developed only for MASAK’s needs.
Collection, integration and analysis of the data which are the steps of financial intelligence have
been automated via EMIS. Medium and long term benefit to be provided by EMIS for the
country will be faster, more reliable and higher quality AML/CFT activities.
Besides, we organised training programs for the authorities from Turkmen to share our
experiences and knowledge for contributing to their studies of developing the required
institutional and legal infrastructure in AML/CFT.
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In 2012, 53 obliged parties were examined under the scope of the inspection of compliance with
obligations program prepared related to previous years.
In 2012, the number of people denunciated upon the findings about money laundering offence
following evaluations and examinations was 275.
The number of natural/legal persons with whom information exchange was made as a result of
analysis and evaluation studies related to terrorist financing offence reached 22.370 in 2012. The
number of natural/legal persons with whom information exchange was made as a result of
analysis and evaluation studies related to money laundering offence reached 1.641
Under the scope of ensuring international cooperation, which is one of the essential elements of
AML/CFT, MASAK signed memoranda of understanding with the FIUs of the USA,
Netherlands, Belgium, Poland, Malaysia, Kosovo, Russian Federation and the Republic of
Philippines. Therefore, a mutual understanding on financial intelligence exchange has been built
with important members of international financial system such as the USA, Netherlands, Belgium
and Russian Federation.
MASAK’s activities performed in 2012 under the scope of the “AML/CFT strategic goal” related
to regulation and coordination; collecting, analysing and evaluating data; examination;
supervision of obligations; foreign relations; training; It and communication are given in detail in
related tables and graphics in MASAK Activity Report. Efforts performed currently by MASAK
for the purpose of achieving the strategic objectives and goals and priority works to be done will
continue in 2013 with the same commitment.