The EU AML package and its impact on Türkiye

Purpose - The purpose of this research is to examine the current Turkish legislative framework in the context of the amendments introduced by the EU AML package, to assess the anticipated changes that may be introduced to Türkiye’s regulatory landscape. Design/methodology/approach - The research conducts a comparative analysis of the principal topics covered in the EU AML rules including obliged entities, enhanced due diligence, cash payment limits, beneficial ownership, high-risk countries, FIUs and supervisors. It then compares these topics with the existing AML framework in Türkiye. Findings - The research identifies a broad alignment between the new EU rules and Turkish legislation. However, notable differences exist in the areas such as a single cash limit specific to AML, the registry and related powers governing beneficial ownership and the powers of FIUs and supervisors. Research limitations/implications - The research is limited to the analysis of the primary legislative texts and does not encompass empirical data concerning the implementation and enforcement of these legal instruments. Further research could explore the practical impact of these changes in Türkiye. Practical implications - The findings highlight areas where Turkish legislation may require alignment with new EU AML rules, providing guidance for policymakers and regulatory bodies in Türkiye. Additionally, the research provides valuable insights for AML practitioners by presenting an overview of current Turkish AML legislation. Social implications - Alignment with EU AML rules can enhance Türkiye’s international political standing and reinforce its reputation as a committed partner in the global fight against financial crime. Originality/value - The research offers a comprehensive comparison of Turkish and EU AML frameworks, thereby contributing to the understanding of the legislative alignment process between an EU candidate country and the EU.