Increased surveillance on financial transactions, including remittances and cash dealings, by the authorities.
New Financial Regulations in Turkey to Enhance Transparency and Combat Illicit Activities
Starting January 1, 2026, Turkey is introducing new financial regulations aimed at enhancing transparency, combating illicit financial flows, and strengthening compliance with the Financial Action Task Force (FATF) standards. These regulations will impact various sectors of the Turkish economy.
The regulations mandate banks and financial institutions to collect detailed information on electronic fund transfers, money transfers, and cash transactions exceeding ₺200,000 (approximately $5,900). A graduated system is in place:
- Transactions between ₺200,000 and ₺2 million require customers to select a transaction category and provide a minimum 20-character explanation for "other" or "personal payment" selections.
- Transactions between ₺2 million and ₺20 million necessitate the completion of a formal cash transaction declaration form.
- Transactions over ₺20 million require the formal declaration form to be supplemented with relevant documentation.
Certain transactions, such as government agency transfers and low-value ATM transactions, are exempted. Financial institutions will also be required to monitor and report suspicious activities, or face administrative sanctions under Law No. 5549.
The regulations align with FATF principles by introducing risk-based analyses and increased traceability measures through defined transaction categories, such as real estate payment, vehicle purchase, crypto/digital asset, and others. Generic transaction labels like "personal payment" require clarifications, or transactions will be blocked.
The new regulations are intended to minimize disruption to daily cash transactions while improving traceability. Financial institutions will offer predefined transaction categories for EFT and wire transfers, and the Financial Crimes Investigation Board (MASAK) in Turkey is developing a regulation to further enhance compliance with FATF standards.
The impact of these regulations on various sectors of Turkey's economy is yet to be determined. However, it is expected that the regulations will contribute to reducing undocumented cash flows and improving Turkey's compliance with international anti-money laundering/counter financing of terrorism (AML/CFT) frameworks, as endorsed by FATF.
[1] Source: Financial Crimes Investigation Board (MASAK) of Turkey [3] Source: Turkish Central Bank
- The new finance regulations in Turkey, related to policy-and-legislation, are expected to have a significant impact on multiple sectors of the Turkish business economy, as they aim to combat illicit activities and strengthen the country's compliance with Financial Action Task Force (FATF) standards.
- The ongoing efforts in Turkish politics, such as the new finance regulations, are aligning with FATF principles by introducing risk-based analyses and increased traceability measures, which are also covered in general-news discussions focusing on anti-money laundering/counter financing of terrorism (AML/CFT) frameworks.
