Innovations Regarding Payment and Electronic Money Institutions Introduced on May 27, 2023
In the Official Gazette dated 27 May 2023 and numbered 32203, two regulations to be taken into consideration by electronic money institutions, the Regulation Amending the Regulation on the Procedures and Principles Regarding the Electronic Notification System of the Financial Crimes Investigation Board Presidency and the Regulation Amending the Regulation on the Program for Compliance with the Obligations Regarding the Prevention of Laundering Proceeds of Crime and Financing of Terrorism, introduced certain innovations.
- Amendment to the Electronic Notification System
In Article 7/1 of the Regulation on the Procedures and Principles Regarding the Electronic Notification System of the Financial Crimes Investigation Board, savings finance companies, payment and electronic money institutions have been added to the notifications to be made by the Financial Crimes Investigation Board (Board) within the scope of the Law No. 5549 on the Prevention of Laundering Proceeds of Crime and the Law No. 6415 on the Prevention of Financing of Terrorism.
Prior to the amendment, this scope included banks, capital market intermediary institutions, financial leasing, factoring, financing companies, insurance and pension companies, portfolio management companies, Central Registry Agency and Post and Telegraph Organization Inc. With the amendment, savings finance companies, payment and electronic money institutions have been included into the scope.
The other amendment was realized with the addition of Provisional Article 2. With the addition of the provisional article, savings finance companies and payment and electronic money institutions, except for those to whom electronic notifications are made within the scope of the second paragraph of the seventh article of the Regulation on the Procedures and Principles Regarding the Electronic Notification System of the Financial Crimes Investigation Board Presidency, will apply to the Board until the date of 1/8/2023 to open an account. Meaning that if the Board deems appropriate, electronic notifications may be made to the obliged persons who apply. Therefore, with the Provisional Article 2 introduced by the Amendment, payment and electronic money institutions will apply to the Presidency until 01/08/2023 to open an account.
- Amendment to the Compliance Program
The other regulation was amended by the Regulation Amending the Regulation on the Program for Compliance with the Obligations Regarding the Prevention of Laundering Proceeds of Crime and Financing of Terrorism. The compliance officer and assistant compliance officer who will be appointed to payment and electronic money institutions and who meet the conditions listed in Article 17[1] of the said regulation must be appointed until 1/6/2021. However, with the amendment, the conditions specified in 17/f.1(d) for the assistant compliance officer will not be sought until the date of 01/06/2024.
Conclusion
The amendments introduced by the two regulations include:
- Savings finance companies, payment and electronic money institutions are now included in the electronic notification system,
- Payment and electronic money institutions will be able to apply to the Presidency until 01/08/2023 for opening an electronic notification account, and
- The conditions specified in Article 17/f.1(d) of the Regulation on the Program for Compliance with the Obligations Regarding the Prevention of Laundering Proceeds of Crime and Financing of Terrorism shall not be sought for assistant compliance officers until the date of 01/06/2024.
[1] Requirements for those to be appointed as compliance officers.
ARTICLE 17 - (1) Persons to be appointed as compliance officers pursuant to Article 16 shall meet the following conditions:
a) Being a Turkish citizen,
b) Not to be deprived of public rights,
c) Heavy imprisonment or imprisonment for more than five years in accordance with the abrogated Turkish Penal Code No. 765 and other laws, even if they have been pardoned, excluding negligent crimes, not being sentenced to imprisonment for more than three years in accordance with the Turkish Penal Code No. 5237 and other laws, or opposition to the provisions of the abrogated Banking Law No. 3182, Banking Law No. 4389, Banking Law No. 5411, Capital Markets Law No. 2499 and the legislation on lending money, or simple or qualified embezzlement, embezzlement, collusion, extortion, bribery, theft, fraud, forgery in accordance with the abrogated Turkish Penal Code No. 765, Turkish Penal Code No. 5237 or other laws, disgraceful crimes such as breach of faith, fraudulent bankruptcy, smuggling offenses other than smuggling, conspiracy to rig official tenders and purchases and sales, or crimes against the personality of the State, revealing State secrets, crimes against the sovereignty of the State and the dignity of its organs, Not being convicted of crimes against the security of the state, crimes against the constitutional order and the functioning of this order, crimes against national defense, crimes against state secrets and espionage, crimes against relations with foreign states, tax evasion, laundering of assets arising from crime and terrorist financing or participation in these crimes,
ç) Graduating from higher education institutions in Turkey (or abroad, whose equivalency is recognized by the Higher Education Council) that provide at least four years of education,
d) Having worked for at least five years in managerial, expert or audit positions at any of the financial institutions listed in the first paragraph of Article 4 (including the Central Bank of the Republic of Turkey and development and investment banks), or in audit staff positions listed in subparagraph (e) of the first paragraph of Article 2 of the Law, or in managerial or expert positions at the Presidency,
e) Not holding qualified shares in or being in the management of the obligor or its subsidiaries,
f) Not being the spouse or up to second degree (including this degree) blood or marriage relative of the qualified shareholder, board members or general manager of the obligor.