The Global Anti- Money Laundering/Combating the Finance of Terrorism and Know Your Customer Policy and Principles of Akbank T.A.S.
Brief Information of Akbank T.A.S.
Akbank T.A.S. was established on 30 January 1948 as a private commercial bank, in accordance with the decision of the Council of Ministers, No.3/6710 and is authorized to perform all economic,financial and commercial activities which are allowed by the laws of the Turkish Republic (T.C.). It is authorised and regulated by the Banking Regulation and Supervision Agency.
Akbank T.A.S.’s branches and subsidiaries trade as Akbank T.A.S. Malta Branch, Akbank N.V. and Akbank AG. Akbank T.A.S.’s foreign subsidiaries must comply with the regulations of the host country’s anti-money laundering and terrorism financing. Each of the Akbank’s foreign subsidiaries has its own compliance declaration which is available on request.
31.1% of Akbank stocks are publicly traded and listed on the Istanbul Stock Exchange (ISE), while the Bank's Level 1 ADRs are traded on the OTC market in the USA.
The ownership structure, list of the Board of Directors and subsidiaries can be found in the following link:
http://www.akbank.com/2032.aspx
Legal and Regulatory Framework in Turkey
The utilization of the financial system to launder money resulting from crimes is a criminal offence in Turkey. Fight against laundering proceeds of crime and combating of financing of terrorism essentially conducted by Financial Crimes Investigation Board (MASAK), which is a main service unit of Ministry of Finance and is directly attached to Ministry of Finance.
The principal requirements, obligations and penalties are contained in:
Scope
The structures of Akbank T.A.S.’s AML/ KYC Standards policy are:
- Complying with AML (Anti- Money Laundering) and CFT (Combating Financing of Terrorism) laws and regulations such as; local laws (Turkish AML Act and Criminal Act) and regulatory guidance, U.N. Security Council Resolutions, EU Directives, USA Patriot Act.
- Recommendations made by the FATF (Financial Action Task Force) Standards on AML and CFT standarts and Application Methodology Criteria, NCCT Reports.
- Evaluating KYC (Know Your Customer) principles and customer identification regulations such as; Basel Principles (Customer due Diligence for Banks), Wofsberg Principles, TBA Local Industry Guidance/ Best Practices.
The objectives of the Policy are;
- to comply with the obligations regarding the prevention of laundering proceeds of crime and financing of terrorism,
- to determine our strategies to mitigate potential risks, our internal controls and measures, operating rules,
- responsibilities through a risk-based evaluation of our customers, transactions, products and services,
- to develop awareness in our existing and new employees on the matters herein mentioned.
AML/CFT Program and Applications
Akbank T.A.S instituted appropriate procedures for controlling activities to comply with all applicable laws and regulation in Turkey and international standards for the need to have adequate systems and controls in place to mitigate the risk of the firm being used to facilitate financial crime. Akbank T.A.S.'s AML/CFT Program includes;
- A designated AML Compliance Officer,
- Written policies, procedures and guidelines,
- Risk based controls, including AML software program that monitors ongoing transactions, account activites of customers and screens existing and prospective customers for AML and CFT purposes,
- Procedures for reporting suspicious activity internally and to relevant law enforcement authority,
- Record keeping according to local laws,
- Training,
- The internal audit operations and independent audit testing.
Customer Acceptance Policy
The policy contents the required principles of Know Your Customer Procedures according to national and international regulations to comply with prevention of money laundering and combating financing of terrorism.
Akbank KYC obligations include;
- Identification when;
- Accepting or delivering cash,
- Establishment of the ultimate beneficiary,
- Making and keeping records,
- Internal security measures.
- Opening account/establishment customer relationship
- For individuals
- Require the official documents,
- ID number
- For corporations and other legal entities
- Customer's name, legal form, address, directors, shareholders,
- The corporate bylaws, powers of attorney and other reliable identifying information,
- Tax number
According to 'Customer Acceptance Policy' Akbank T.A.S. do not accept the following categories of customers;
- Customers who refuse to provide the required information and documentation,
- Customers with business that make it impossible to verify the legitimacy of their activities or the source of funds,
- Shell banks,
- Neither anonymous accounts nor accounts using fictitious names may be opened or maintained.
- Customers who are included in lists prepared by international institutions and organizations showing money-launderers and supporters of terrorism financing (such as; OFAC, EU, UN, HMT, etc.)
- Customers who has a negative record in the bank's internal intelligence system for money-laundering, financing of terrorism, and financial crimes related thereto (fraud, counterfeiting, organized offenses, etc.)
In the frame of the risk-based approach, risk has been categorized into three; customer, product/service risk and country/region risk..
- 1. High Risk Products and Services
- Fund Transfers,
- EFT,
- Money Transfer Orders
- International Transfers
- Cash Transactions,
- Cash deposit,
- Cash withdrawal,
- Non-face-to-face Banking Services,
- Transactions conducted via Internet Banking,
- Transactions conducted via ATM,
- Transactions conducted via Telephone Banking (Call Center),
- Credit allocation transactions,
- 2. High Risk Customers
Certain kinds of businesses may require EDD at account opening transaction review. Identified as high-risk include:
- Associations, Foundations, Charities and other Non-governmental Organizations
- Off-shore banks
- Companies founded in risky regions and countries
- Citizens of risky countries
- Businesses dealing with high amounts of cash
- Private banking customers
- Correspondent banks
- Politically exposed persons
- Liable parties listed in Law No.5549, Article 2
- 3. High-Risk Geographical Locations
- Tax heavens (according to FATF criteria)
- Countries subject to partial or complete embargo by EU
- Countries subject to embargo by OFAC
- Countries and regions included in the list of countries and regions denying cooperation with FATF
- Countries specified in FINCEN list
Training
Training activities are carried out in order to improve existing and new employees’s the knowledge of the Akbank’s products and services may be used to facilitate money laundering or terrorist financing and awareness of their legal obligations
