REPUBLIC OF TURKEY MINISTRY OF FINANCE MASAK ACTIVITY REPORT 2011 ANKARA – MAY 2012 TABLE OF CONTENTS PRESIDENT’S STATEMENT ....................................................................................................................3 I. COMBATING AGAINST LAUNDERING PROCEEDS OF CRIME AND FINANCING OF TERRORISM ...............................................................................................................................................5 II. OVERALL INFORMATION ON MASAK .........................................................................................7 A. Vision and Mission .................................................................................................................................. 7 B. Power, Functions and Responsibilities ............................................................................................ 7 C. Administrative Structure Information ............................................................................................ 8 1. Position in the Ministry and Organizational Structure .......................................... 8 2. Human Resources .............................................................................................................. 11 III. PURPOSE AND OBJECTIVE ......................................................................................................... 15 A. Purpose and Objective ........................................................................................................................ 15 B. Essential Priorities ............................................................................................................................... 15 IV. INFORMATION AND ASSESSMENTS ON ACTIVITIES ........................................................... 15 A. Fiscal Information ................................................................................................................................ 15 B. Information on Performance............................................................................................................ 17 1. Regulation and Coordination Activities ................................................................. 17 1.1. Regulation Activities ..................................................................................................... 17 1.2. Coordination Activities ................................................................................................ 18 1.3. Other Activities ............................................................................................................... 18 2. Studies for Detection and Prevention of Laundering and Financing of Terrorism .................................................................................................................................. 19 2.1. Data Collection Activities ............................................................................................ 19 2.1.1. Suspicious Transaction Reports .................................................................................................................... 20 2.1.2. Requests for Evaluations and Examinations made by Public Prosecutor’s Offices and Courts………… ............................................................................................................................................................................ 25 2.1.3. Other Reports ......................................................................................................................................................... 26 2.1.4. Information Requests ......................................................................................................................................... 29 2.2. Analysis, Evaluation and Examination Activities ............................................... 30 2.2.1. Analysis and Evaluation..................................................................................................................................... 31 2.2.1.1. Analysis and Evaluation Studies regarding Laundering Offence ............................................... 31 2.2.1.1.1. Institutions that are informed after the analysis and evaluation works ................................ 35 2.2.1.1.2. Subjects of Predicate Offences Revealed After Analysis and Evaluation Works ................... 36 2.2.1.2. Analysis and Evaluations related to Terrorist Financing Offence ............................................. 38 2.2.1.2.1. Institutions Informed after the Analyses and Evaluations ........................................................... 40 2.2.1.3. General Analysis Works .............................................................................................................................. 41 2.2.1.3.1. Strategic Analysis and Evaluation Works ........................................................................................... 41 2.2.2. Examinations of Laundering Offence ........................................................................................................... 41 3. Activities of Supervision of Obligations ..................................................................... 45 3.1. Programmed Supervisions of Compliance to Obligations ............................... 45 3.2. Examinations of violations of obligations and administrative fines imposed ...................................................................................................................................... 46 3.3. Judicial Penalties ........................................................................................................... 47 4. Activities Related to Foreign Relations ...................................................................... 47 4.1. FATF -Turkey III. Round Mutual Evaluation Process ........................................ 47 4.2. The Process of “International Cooperation Review Group (ICRG) in FATF Turkey Relation ...................................................................................................................... 48 4.3. Memorandums of Understanding (MOUs) Signed with Counterpart Institutions ............................................................................................................................... 50 4.4. Meetings Abroad ..................................................Hata! Yer işareti tanımlanmamış.0 5. Training Activities and Other Activities for Increasing Public Awareness ... 51 5.1. In-house Trainings ........................................................................................................ 51 5.2. Training Activities for Obliged Parties and Other Public Institutions ........ 52 5.3. Other Activities for Increasing Public Awareness..................... Hata! Yer işareti tanımlanmamış.3 6. MASAK Information Systems and Project Activities ..................... Hata! Yer işareti tanımlanmamış.3 C. Performance Results ................................................................. Hata! Yer işareti tanımlanmamış.3 1. Table on Performance Results ........................Hata! Yer işareti tanımlanmamış.3 2. Evaluation of Performance Results ...............Hata! Yer işareti tanımlanmamış.3 3. Evaluation of the Performance Information System ................ Hata! Yer işareti tanımlanmamış. V. EVALUATION OF THE INSTITUTIONAL CAPABILITY AND CAPACITY ... Hata! Yer işareti tanımlanmamış. A. Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis ... Hata! Yer işareti tanımlanmamış. VI. CONCLUSION ........................................................................... Hata! Yer işareti tanımlanmamış. PRESIDENT’S STATEMENT Financial Crimes Investigation Board (MASAK) continued its activities intensively in 2011 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, inspections 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 2011 intensely following establishment of Training Group in MASAK. Furthermore, closer and face- to-face works were performed with banks and other financial institutions in 2011 in order to enhance suspicious transaction report system and evaluate inspection of obligations. In this scope, workshops attended by compliance officers and officials from banks, insurance companies, capital market board brokers, portfolio management companies, factoring and financial leasing companies were organized separately in Ankara and Istanbul in different dates. The workshops were held with broad participation of obliged parties and it was decided to hold workshops periodically. As a result of training activities and workshops, financial institutions besides banks sending suspicious transaction report increased to 91 in 2011 compared to 49 in 2010. Moreover, the workshops realized with participation of examiners firstly in 2011 aimed at evaluating money laundering investigations and inspection of obligations, and effectiveness of inspections. On the other hand, in 2001, training activities where we passed our experience and background were carried out for TRNC, Turkmenistan and Afghanistan