1 / 18

Combatting Corruption and Money Laundering in Turkey: Overview and Strategies

Review of anti-corruption strategies, impact, and steps taken to combat money laundering in Turkey based on research conducted in April 2013. Findings highlight corruption prevalence, sectors affected, response evaluation, and international rankings. Steps taken include recent legislations and reforms to reduce bureaucracy. Evaluation also includes general responses towards anti-money laundering efforts and their economic and social consequences.

duer
Download Presentation

Combatting Corruption and Money Laundering in Turkey: Overview and Strategies

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. A QUICK OVERVIEW OF THE RESULTS 24-26 April 2013, Vietnam Musa KAYRAK, SeniorAuditor, CISA Taha AKGUN, Auditor

  2. MAIN FINDINGS REGARDING CORRUPTION

  3. RESPONDENT • Prime Ministry Inspection Board (ACA) • Coordinationauthority • Implementationof the National Anti-Corruption Strategy, • Monitoringof funds provided by European Union and the other International Institutions

  4. GENERAL EVALUATION OF RESPONSES-1 • Current prevalence of corruption in Turkey : low(Q1) • Comparison with past: lower than previously (Q2) • Unpredictable patterns (Q7) • Occurs equally both in public and private(Q8) (????) • Intolerance public (Q5) • Moderetly strong actions taken by the government (Q6) • Most common types: Nepotism>abuse of position/power>criminal breach of trust >bribery (Q15) • Sectors mostly affected: Local Governments/Municipalities> Energy> Agriculture> Customs>Health(Q16)

  5. GENERAL EVALUATION OF RESPONSES-2 • Mostly probable occurence: Procurement contracts> Licencing>public funds disbursement procedures (Q17) • procurement contracts • Highest probability of corruption. • High Complexity • Improvement: Amendments to the Public Procurement Law • Money from corruption  Investing in real estate and bank deposits (18)

  6. GENERAL EVALUATION OF RESPONSES-3 • Whistle blowing: very important and effective (Q24& Q25) • Somewhat serious impact on government’s budget, citizens and private sector (Q26, Q27 & Q28) • Root causes of corruption(19) • Culture, customs and habits of giving bribes to get things done (He who touches honey is compelled to lick his fingers.) • Absence, weakness or failure in regulatory and legal systems to combat corruption • Low salary levels • Comment (from Board): Lack of the strict audit system

  7. GENERAL EVALUATION OF RESPONSES-4 • Petty corruption vs Grand corruption • Petty corruption: Moderate(Q10), among rank and file employees (Q11) • Grand corruption: Low (Q13), among powerful government offcials (Q14), (Why??? due to strong immunity regulations for high ranking public officials) • Petty corruption >Grand corruption (Q9)

  8. ABOUT INTERNATIONAL EVALUATIONS-1 • The results of indexes conducted by International Institutions as the ranking of Turkey (TI, OBI etc.) : Lower level of corruption (Q1&Q2) • STILL, reflection of corruption in CPIs and other surveys(by TI &GI): NOT FAIR (Q3&Q4) • CPI does not tell us the full story of corruption in a country. • Lower score does not necessarily means it is more corrupt nation • Global Corruption Barometer Survey: 59 % of Turkish people think that government takes effective actions in the fights against corruption.

  9. STEPS TAKEN AGAINST CORRUPTION-1 Recent Legislations • Adoption of National Anti-Corruption Strategy, • National Anti-Smuggling Strategy, • Ratification of the United Nations Convention Against Corruption, • Right of information Act, • Prevention of Laundering Proceeds of Crime Act, • Public Procurement Law, • New Turkish Penal Code, • New Public Financial Management and Control Law, • New Law on TCA.

  10. STEPS TAKEN AGAINST CORRUPTION-2 Reformsforreducing bureaucracyand the regulatory burden on companies. • simplifying company establishment procedures, • reducing permits requirements • creating a single company registration form. • Establishment of the Investment Support and Promotion Agency of Turkey • Board of Ethics for Public Officials: Authorized to investigate General Manager or higher ranking public officials in terms of complyingwithethic rules.

  11. MAIN FINDINGS REGARDING ANTI-MONEY LAUNDERING

  12. RESPONDENT • The Financial Crimes Investigation Board • making policies, • carrying out investigation, • conveying the information to relevant authoritiesetc.

  13. GENERAL EVALUATION OF RESPONSES-1 • Money laundering in Turkey • Serious(Q1) • tends to increase in recent years (Q2) • tends to be more sophisticated (Q3) • occurs public and private entities(Q4) • The fields that have highest risk of money laundering(Q5) • Trade • Real Estate • Construction • Finance, Banking

  14. GENERAL EVALUATION OF RESPONSES-2 • Common methods of money laundering: Cash Transaction, Real Estate, Business, Money Exchange, Project, Through Financial Institutions, Stock, Through Internet (Q6) • The most favorable environment: Using cash and illegal money transfer (Q7) • Offences linked with: Embezzlement, corruption, buying and selling of illegal goods , terrorism, drugs and smuggling (Q8) • The main reason: hiding illegally accumulated wealth (Q9) • Money laundering mainly leads to increased crime and corruption (Q10)

  15. GENERAL EVALUATION OF RESPONSES-3 • Moneylaundering seriouseconomic and social consequences(Q11) • Money laundering seriously affects the national security, international reputation, economy and economic reforms(Q12) • Mostsignificant incidences of AML occured2007 to 2012 • smuggling activities in customs • virtual and internet gambling(Q13) • Overall:Turkey is committed to do its best for the purpose of preventing and detecting money laundering and financing of terrorism(Q15).

  16. SUGGESTIONS

  17. Time pressure /Needforbettercomplyingwiththe time schedule • Bettertousemultiplechoiceorcloseendedquestions • Bettercommunication: Needforquickresponsestoemails • Severalinvalidemailadresses: Update theemaillist • Sharetheresults of thequestionnaireswithallparticipantcountries in a timelymanner

  18. THANK YOU FOR YOUR ATTENTION

More Related