Binance Turkey was found to have broken the Law on the Prevention of Laundering Proceeds of Crime, also known as the AML Law, by MASAK.
Binance Turkey was fined 8 million lira (nearly $750,000) by the Financial Crimes Investigation Board (MASAK) after failing the financial watchdog’s audit for monitoring Anti-Money Laundering (AML) compliance.
The Financial Crimes Investigation Board (MASAK), Turkey’s financial intelligence unit under the Ministry of Finance and Treasury, found Binance’s Turkey operations in violation of laws designed to prevent the laundering of money obtained through illegal means. MASAK audited Law No. 5549 on Prevention of Laundering Proceeds of Crime, also known as the AML Law, according to local news agency Anadolu Agency.
The Turkish Anti-Money Laundering Law requires companies to identify and verify the personal identification information of customers on the platform, which includes information such as surname, date of birth, T.C. identification number (the Turkish equivalent of a social security number), and type and number of identity documents. Businesses must also notify the government of suspicious activities within a 10-day period, according to the law.
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The watchdog, according to Cointelegraph Turkey, imposed the maximum administrative fine of 8 million Turkish lira for the alleged violation. This timeline 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 fined by the Turkish government. According to former Treasury and Cost Minister Lutfi Elvan, MASAK works closely with the Financial Action Task Force (FATF), a global regulator against money laundering and terrorist financing:
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“The FATF has requested that action be taken against cryptocurrency trading platforms.”
In response to this request, MASAK has agreed to report transactions worth more than 10,000 lira within 10 days.
Recep Tayyip Erdoan, Turkey’s president, confirmed the completion of a crypto law, which will be handed over to Parliament for mainstream implementation soon.
According to Cointelegraph, the crypto law envisions a new economic model that can aid Turkey’s efforts to restore the lira’s depreciating value. Erdoan also stated that the recent inflation in the Turkish lira is not due to mathematics, but rather to a process, implying that the lira’s value growth is possible and possible:
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“We intend to channel it to a dry spot with this understanding.” The exchange rate, on the other hand, will set its own price on the market.”
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