Companies must file an immediate announcement to the authorities if there are any suspicious activity within 10 days to pass the AML Law’s inspection.
After failing to pass the investigation of the Law on Prevention of Laundering Proceeds, or the AML Law, Turkey’s Financial Crimes Investigation Board (MASAK) has launched a lawsuit against Binance Turkey.
According to the Ankara-based news agency Anadolu Agency, MASAK examined financial papers of Binance, KYC reports, and proof about users’ personal data as part of an audit of Law No. 5549.
A Massive Donation in the Ancient East
MASAK, which is part of the Ministry of Finance and Treasury, is working with the Financial Action Task Force (FATF) to detect money laundering and safeguard people from terrorist financing.
Former Treasury and Cost Minister Lutfi Elvan noted, “The FATF has requested that steps be made against crypto trading sites.”
Binance Turkey’s crypto-related activities were found to be in violation of the Law on the Prevention of Laundering Proceeds by MASAK. Binance Turkey has been fined 8 million Turkish lira ($750,000) for breaching the law. Binance became the first crypto-related company to be penalized by the Turkish government as a result of the unhappy incident.
The fine issued on Binance Teknoloji was the first of its sort since the government took on responsibility to regulate crypto asset service providers in May.Anadolu News
MASAK has also promised to record transactions totaling more than 10,000 lira within ten days. This timeline corresponds to President Recep Tayyip Erdogan’s announcement that a draft cryptocurrency law has been finalized and will be presented to the National Assembly in the near future.
Turkey’s efforts to restore the lira’s value may be aided by the new law. Erdogan also stated that the Turkish lira’s recent awful inflation is a national issue that must be addressed. In contrast to his declaration of war on Bitcoin at the end of September, it’s possible that Turkey will opt for cryptocurrencies.
As part of Binance, there is more work to be done. Because it has failed to create strong ties with numerous financial regulators in recent decades, the corporation needs to be more determined in addressing legal challenges.
The Game Isn’t Perfect
If the same little errors occur, the exchange is extremely likely to be followed by a series of unpleasant occurrences that will have a substantial impact on future development.
Cryptocurrency is a contentious subject. Critics are concerned about the hazards it poses, while supporters hope it will alter global finance. Money laundering, according to cryptocurrency, is no laughing issue.
Money laundering is a method used by criminals to transform unlawful monies into legal funds. Criminals can make a lot of “dirty” money through unlawful operations, hence they have to be included in financial transactions in a decent and public way. After being laundered, money is returned to the financial system with a clean record.
The anonymous, borderless, and uncontrollable qualities of digital currencies have made money laundering a challenge for authorities in many countries throughout the world. It is now difficult to trace the monetary flow caused by crime.
Furthermore, according to the IMF, cryptocurrencies may generate data gaps, which could “open undesired doors for money laundering and terrorism financing.”
The IMF’s fears are justified, as investing in the cryptosphere exposes investors to a lack of understanding, information, transparency, and accountability.
The International Monetary Fund (IMF) has made a demand for supervisory authorities in each country to act to adopt standard global supervision guidelines to improve cross-border surveillance.
Because digital money is such a nascent business, countries must work together to promote data standardization.
The watchdog, according to Cointelegraph, levied the maximum administrative fine of 8 million Turkish lira for the alleged breach. This timetable also coincides with President Erdoan’s announcement of the completion of a crypto law draft, which will be sent to Parliament for approval soon.
Binance is now the first cryptocurrency company to be penalized by the Turkish government. According to former Treasury and Cost Minister Lutfi Elvan, MASAK collaborates closely with the Financial Action Task Force (FATF), a global regulator of money laundering and terrorism financing:
FATF has asked for measures to be taken against crypto trading platforms.Lutfi Elvan, former Treasury and Cost Minister