The Financial Crimes Investigation Board (MASAK) has fined Binance Turkey 8 million lira (nearly $ 750,000) after the cryptocurrency exchange failed the financial watchdog's audit to monitor Anti-Money Laundering compliance. Money (AML).
The Financial Crimes Investigation Board (MASAK), which acts as Turkey's financial intelligence unit under the Ministry of Finance and Treasury, found Binance's operations in Turkey guilty of violating laws that seek to prevent the laundering of acquired money. by criminal means. According To the local media Anadolu Agency, MASAK carried out an audit of Law No. 5549 on Prevention of Laundering of Proceeds of Crime, also known as the AML Law.
The AML Law in Turkey requires companies to identify and verify the personally identifiable information of customers on the platform, which includes details such as last name, date of birth, TC identification number (equivalent in Turkey to a number of social security) and the type and number of identical documents. The law also requires companies to immediately notify the government of suspicious activity within a 10-day period.
As Cointelegraph Turkey reported, the watchdog imposed the highest possible administrative fine of 8 million Turkish lira for the alleged violation. Furthermore, this timeline also coincides with the day President Erdogan announced the completion of a crypto bill which will soon be submitted to Parliament for approval.
With this, Binance also becomes the first crypto company to be fined by the Turkish government. Additionally, MASAK is working closely with the Financial Action Task Force (FATF), a global regulator against money laundering and terrorist financing, according to former Treasury and Costs Minister Lutfi Elvan:
"The FATF has called for action against crypto trading platforms."
In line with this request, MASAK has also committed to reporting transactions that exceed the value of 10,000 lira within 10 days.
Related: Turkey's crypto law is ready for parliament, President Erdogan confirms
Turkish President Recep Tayyip Erdogan confirmed the completion of an encryption law that will soon be handed over to Parliament for general implementation.
As Cointelegraph reported, the crypto law provides for a new economic model that may bolster Turkey's effort to recover the depreciating value of the lira. Erdogan also said that the recent inflation of the Turkish lira is not related to mathematics, but a matter of process, implying a possibility and potential for growth of the value of the lira:
โWith this understanding, we intend to channel it to a dry place. But the exchange rate will find its own price in the market.
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