Anti-Money Laundering Policy
Prevention of Laundering Proceeds of Crime and Financing of Terrorism
T. Garanti Bankası A.Ş., its branches, affiliates, subsidiaries (hereinafter referred to as Garanti BBVA) are committed to cooperating with law enforcement and regulatory agencies to fight against money laundering, terrorist financing, and other financial offences.
Money laundering can be referred to as activities to disguise or conceal the origin of funds generated through criminal activities.
Generally money laundering process includes three stages:
- Placement (introduction of proceeds of crime into financial system),
- Layering (use of layers to distance these proceeds from their sources),
- Integration (re-entry into financial system of laundered proceeds).
Apparently financial institutions may be used at any point in money laundering process. Even unintentional involvement in any criminal activity may weaken the institution's public reputation.
Garanti BBVA's primary concern in banking is
- To comply all requirements of applicable laws and regulations,
- To cooperate with law enforcement and regulatory agencies,
- To do business as per ethical conduct.
Garanti BBVA headquarters in İstanbul, Turkey and is supervised by Banking Regulation and Supervision Agency (Bankacilik Duzenleme ve Denetleme Kurumu - BDDK, www.bddk.org.tr). The financial Intelligence Unit of the Republic of Turkey is Financial Crimes Investigation Board (Mali Suclari Arastirma Kurulu Baskanligi - MASAK, www.masak.gov.tr).
The republic of Turkey is a member country of the Financial Action Task Force (FATF) and has enacted laws and regulations to combat money laundering, terrorist financing and other financial crimes.
Since it is accepted that an institution may not always detect whether a transaction is money laundering related, to ensure Garanti BBVA is not unwittingly used as an intermediary in money laundering process and other related criminal activities, and to comply with all applicable laws, regulations and rulings in the countries in which it does business, an anti-money laundering program is implemented.
This program includes;
- Written policies and procedures,
- Assigning a compliance officer responsible for implementing anti-money laundering (A-ML ) policies and procedures,
- An audit and review function to test the robustness of policies and procedures,
- Monitoring and auditing customer activities and transactions as per A-ML legislations and regulations,
- Training of employees on A-ML.
A-ML program is responsibility of all of the employees.
A summary of policies and procedures follows:
- Know Your Customer (KYC): True and adequate identification of customers and beneficial owners, monitoring transactions, monitoring banking behaviors to determine the correspondence with their income, welfare, social life, type of business, etc.
- Account Opening: Account opening demands should be met only if required evidence of identity and customer data is obtained. An account must bear the real name of the account holder. No numbered or coded or anonymous accounts are permitted. Black list controls are also performed for applicants.
- Record Keeping: Records and evidence of identification and transactions must be kept for at least 8 years.
- Suspicious Activity Reporting: All suspicious transactions and activities must be reported to related authorities.
- Correspondence Banking: When establishing accounts for correspondents, sufficient care must be taken for identifying the institution, nature of business, for obtaining other relevant data such as institutions' A-ML and KYC policies and procedures, and for corresponding with financial institutions in FATF's Non-Cooperative Countries and Territories: Garanti BBVA does not maintain any relationship with shell banks.
- Cooperation with Authorities: Where applicable, cooperation with law enforcement and regulatory authorities is essential. This may include, consistent with laws, freezing of accounts, providing information, and so on.
Politically Exposed Persons (PEPs)
“Politically exposed persons” are persons who hold or have ever held senior public official; e.g. head of state or government, senior politicians, senior governmental officials, legal or military personnel, senior party functionaries. The business relationship with families and close associates of PEPs covers a reputation risk as well as business relationship with themselves. The definition does not cover the middle or lower executives of categories mentioned above.
- Bank takes additional KYC measures defined below regarding PEPs;
- Develops an appropriate risk management system to determine whether a customer is a PEP or not.
- Ensures an appropriate senior management approval to be obtained for establishing or maintaining business relationships taking into consideration the risk level of the customers.
- Ensures required measures to be taken to identify the source of wealth and source of funds of such customers.
- Conducts enhanced ongoing monitoring of the business relationship.