Ministry of Finance and Central Bank of the TRNC Statement on the Anti-Money Laundering Law

The Ministry of Finance and the Central Bank of the Turkish Republic of Northern Cyprus (TRNC) have issued a joint statement regarding the "Prevention of Money Laundering, Terrorism Financing, and Proliferation of Weapons of Mass Destruction" law. The law was unanimously passed by the Republic Assembly on December 22 and came into effect on January 4 after being published in the Official Gazette.

The joint statement provides information about the obligations imposed by the law, emphasizing the importance of informing the public in the fight against money laundering. It also lists individuals or entities held accountable under the enacted law.

The statement notes that the law in effect "imposes obligations on banks, financial institutions, gaming halls, service providers for betting and crypto-assets, issuers of crypto-assets, and providers of deposit wallet storage services."

With the enforcement of the law, prepared based on European Union directives, FATF recommendations, and other relevant international norms, a new phase in combating money laundering in the country is expected.

The new law is also anticipated to "contribute significantly to the country's long-term and sustainable development, as well as ensuring public order and security, yielding desired positive outcomes and meeting public expectations over an extended period with the effective participation of all stakeholders and societal support."

In connection with the adoption of the new law, existing definitions of parties and obligations have been expanded, and comprehensive rules for their audit have been introduced. Additionally, detailed administrative fines and penalties for violating these obligations have been defined.

According to the statement, the law applies to banks, financial institutions, including all lending or credit activities, such as consumer loans, mortgage loans, factoring services, and financial leasing services, payment services, including money sending or money transfer, as well as other commercial areas of activity.

Furthermore, the law extends to accountants, auditors, and tax consultants, as well as lawyers acting on behalf of their clients in any financial transaction, including real estate.