What Is MASAK? Türkiye’s Financial Intelligence Unit Explained

MASAK (Financial Crimes Investigation Board) is Türkiye’s central financial intelligence authority responsible for preventing the laundering of criminal proceeds, terrorist financing, and the proliferation of weapons of mass destruction. Operating under the Ministry of Treasury and Finance since 1997, MASAK plays a pivotal role in shaping Türkiye’s compliance framework by regulating both financial and certain non-financial institutions.

This article, prepared by Bayraktar Attorneys, explains MASAK’s scope, legal basis, reporting obligations, and the legal risks of non-compliance. If you are a foreign investor, financial institution, real estate developer, or service provider in Türkiye, understanding MASAK regulations is essential to maintaining legal integrity.

What Is MASAK?

MASAK stands for Mali Suçları Araştırma Kurulu – the Financial Crimes Investigation Board. It was established under Law No. 4208 on the Prevention of Laundering Proceeds of Crime and began operations on February 17, 1997. As a specialized department of the Ministry of Treasury and Finance, MASAK functions as Türkiye’s national Financial Intelligence Unit (FIU).

The institution’s primary mission is to control financial values derived from criminal activities and to implement preventative measures against:

• Money laundering,

• Financing of terrorism,

• Financing of weapons of mass destruction (WMDs).

Legal Framework Governing MASAK

MASAK’s authority stems from:

• The Council of Europe Convention on Laundering, Search, Seizure and Confiscation of the Proceeds of Crime, to which Türkiye is a signatory.

• Law No. 5549 on the Prevention of Laundering Proceeds of Crime, which provides the domestic legal basis.

• The Regulation on Measures Regarding Prevention of Laundering Proceeds of Crime and Terrorist Financing.

These instruments regulate MASAK’s investigative powers and the obligations of private sector actors, especially financial institutions and designated non-financial businesses and professions (DNFBPs).

Key State Obligations Under International Conventions

The Council of Europe Convention outlines Türkiye’s obligations for criminal asset seizure, investigation procedures, and the criminalization of laundering offenses.

Key Obligations Include:

• Preventing the disposal or transfer of suspicious assets.

• Allowing courts and authorities to access commercial records and banking information without invoking bank secrecy.

• Using special investigative techniques like communication surveillance and data tracking.

• Protecting the legal rights of persons affected by enforcement.

Criminalized Acts Include:

1. Transferring or converting assets with knowledge of their illicit origin to hide their source.

2. Concealing the nature or ownership of illegal assets.

3. Acquiring or using such assets while knowing their origin.

4. Aiding or conspiring in any of the above activities.

Obligations Imposed on Businesses in Türkiye

According to Law No. 5549, the following sectors are considered obligated institutions under Turkish AML law:

• Banks, insurers, investment firms

• Real estate agencies, car and machinery dealers

• Jewelers, art dealers, gaming operators

• Notaries and sports clubs

• Lawyers and mediators (under limited conditions)

• NGOs, foundations, company service providers

These sectors must adopt internal controls, file suspicious transaction reports, and appoint compliance officers where applicable.

What Are the Core Compliance Obligations?

1. Customer Due Diligence (CDD)

Before initiating any transaction, institutions must verify the identity of customers and beneficiaries. The rules differ slightly depending on whether the institution is a financial entity or DNFBP.

Failure to comply results in an administrative fine of 30,000 TL.

2. Suspicious Transaction Reporting (STR)

If there is suspicion that an asset is linked to crime or terrorism, it must be reported to MASAK immediately using the STR form.

Reports must be submitted within 10 business days from the date of suspicion. Paper submissions must be signed and retained for 8 years.

Authorized institutions may submit reports electronically through EMIS.ONLINE.

Failure to submit STRs may result in fines up to 50,000 TL, and breaches of confidentiality can lead to 1–3 years imprisonment and criminal fines.

3. Ongoing Reporting and Recordkeeping

Transactions above certain thresholds must be regularly reported to the Ministry. Businesses must also:

• Retain all relevant records for 8 years

• Provide documents when requested by MASAK inspectors

• Cooperate during audits and investigations

Failure to comply may result in prison sentences of 1–3 years and monetary fines.

Compliance Program Requirement (Uyum Programı)

Large institutions must implement a compliance program under the Regulation on Compliance with AML/CFT Measures, published in the Official Gazette (16.09.2008, No. 26999).

This includes:

• Appointing a compliance officer,

• Training staff,

• Setting up internal audit systems,

• Risk management protocols.

Penalties for failure to implement a compliance program start with a formal warning. If deficiencies are not corrected, administrative fines can rise up to 500,000 TL, and even lead to license suspension.

Why MASAK Compliance Matters for Foreign Investors

Whether you're a foreigner opening a bank account in Türkiye, purchasing real estate for citizenship, or operating a company, you are likely to fall under MASAK scrutiny. International standards on AML and CFT are increasingly shaping investment landscapes, and non-compliance can trigger audits, fines, and visa complications.

At Bayraktar Attorneys, we help foreign clients:

• Navigate MASAK obligations during real estate purchases,

• Structure companies in compliance with AML laws,

• Respond to MASAK inquiries and investigations,

• Defend against criminal penalties arising from compliance failures.

Conclusion: Ensure Compliance Before It's Too Late

MASAK has become one of the most important regulatory bodies in Türkiye’s financial and commercial landscape. Whether you’re a banker, property investor, lawyer, or entrepreneur, understanding MASAK’s role and implementing compliance mechanisms are no longer optional; they are legal imperatives.

If you're unsure whether your business activities or personal transactions fall under MASAK’s jurisdiction, contact our law firm for legal consultation.

Bayraktar Attorneys regularly represents clients in high-value real estate transactions, bank onboarding processes, and investment structuring, all under full compliance with Turkish AML and CFT regulations.