Turkish regulatory body Financial Crimes Investigation Board (MASAK) has found the financial platforms, Binance operating in Turkey as guilty of non-compliance with local laws on Anti-Money-Laundering (AML) audit. 8 million lira (nearly $750,000) Binance is required to pay for the alleged violation.

Under the Ministry of Finance and Treasury MASAK serves as Turkey’s financial intelligence unit. MASAK conducted an audit of Law No. 5549 which mainly focussed on Prevention of Laundering Proceeds of Crime, also known as the AML Law., as per the local publisher media Anadolu agency. The crypto exchange Binance failed the audit as it lacks to set proper measures to prevent proceeds through illicit means from being laundered on the platform.

 As per Turkish AML law, the firms working in the financial sector must identify and verify customers’ personal identification details on the platform including surname, dates of birth, and submit unique identification number documents, type, and a number of identity documents. The law also requires businesses to immediately report on identifying any suspicious transactions taking place to the relevant government authorities within 10 days tenure.

The timeline also coincides with the day, President Erdogan announced the completion of a crypto law draft that will soon be handed over to the Parliament for permission. As Binance’s non-compliance can affect the nation, the government fined the maximum amount and hence it becomes the first crypto exchange in Turkey to get fined by the government. MASAK asked exchanges to notify transactions within 10 days which exceeds the value of 10 thousand lira.

MASAK is working with a global regulator Financial Action Task Force (FATF), against money laundering and terrorist financing, according to former Treasury and Cost Minister Lutfi Elvan“FATF has asked for measures to be taken against crypto trading platforms.”

Warning received from regulators earlier:

Earlier Binance was fined for violating regulatory rules. In the months of April, regulators notified exchanges operating in Turkey about the same scenario. In Singapore, U.K, and U.S, Binance had to go through a difficult time dealing with strict regulations.

Joyashree Dey

CBW - External Analyst

INDIA