Binance Turkey fined 8 million lira for non-compliance with money laundering

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2021-12-29 22:09:15

MASAK has found Binance Turkey guilty of violating the Anti-Money Laundering Law, also known as the AML Law.

The Financial Crimes Investigation Commission (MASAK) has fined Binance Turkey 8 million lira (nearly $750,000) after the crypto exchange failed in an audit by the financial watchdog to monitor Monitor Anti-Money Laundering (AML) compliance.

The Financial Crimes Investigation Unit (MASAK), which serves as the Turkish financial intelligence unit under the Ministry of Finance and Treasury, has discovered the activities of cryptocurrency exchange Binance in Turkey is guilty of breaking the law to prevent money laundering through criminal means. According to local media outlet Anadolu Agency, MASAK conducted an audit of Law No. 5549 on Prevention of Money Laundering Crime, also known as AML Law.

AML law in Turkey requires companies to identify and verify customers’ personally identifiable information on the platform, including details such as last name, date of birth, TC identifier (Turkey equivalent) with social security number), type and number of identification. The law also requires businesses to immediately notify the government of suspicious activities within 10 days.

As Cointelegraph Turkey reported, the watchdog has imposed a maximum possible administrative fine of 8 million Turkish lira for alleged violations. In addition, this timeline also coincides with the day President Erdoğan announced the completion of the draft cryptocurrency law that will soon be passed to Parliament for approval.

With this, Binance also became the first crypto business to be fined by the Turkish government. Furthermore, MASAK is working closely with the Financial Action Task Force (FATF), a global regulator against money laundering and terrorist financing, according to former Minister of Finance and Costs Lutfi Elvan :

“The FATF has requested that measures be taken against cryptocurrency trading platforms.”

In accordance with this request, MASAK also agreed to report transactions exceeding the value of 10 thousand lira within 10 days.

Turkish President Recep Tayyip Erdoğan has confirmed the completion of the cryptocurrency law will soon be transferred to Parliament for mainstream implementation.

As Cointelegraph reported, the crypto law envisions a new economic model that could boost Turkey’s efforts to bring back the dwindling lira value. Erdoğan also said that the recent inflation in the Turkish lira is not math related but a matter of process – implying the lira’s ability and potential to grow in value:

“With this understanding, we plan to move it to a dry spot. But the exchange rate will find its own price in the market”.


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