The Financial Crimes Investigation Board

General Communique
No: 7

          

1. Subject

Principles Regarding Customer Due Diligence (CDD) are specified in chapter three of “Regulation on Measures Regarding Prevention of Laundering Proceeds of Crime and Financing of Terrorism” (hereinafter refers to Regulation) published in the Official Gazette No.26751 on 09.01.2008 and entered into force on 01.04.2008.

Under the amended Provisional Article 2 of the Regulation made by the Regulation published in the Official Gazette No.26848 on 15.04.2008, it is stated that the obliged parties are required to ensure the information of the customers to whom they have permanent business relationships as of the date of entry into force of the Regulation to comply with the Regulation until 31.12.2008 and the Ministry of Finance is authorized to determine the scope of procedures as to obliged parties, to redetermine the periods and determine other principles and procedures in implementation of the Article.

Under the authority entitled to the Ministry of Finance by the aforementioned provision, ensuring information of customers to whom the obliged parties have permanent business relationships as of 01.04.2008 to comply with the Regulation and other explanations within the scope of customer identification is the subject matter of this Communique .

2. The Information Required to be Obtained and Verified in the framework of Permanent Business Relationship

The information required to be obtained and verified by the obliged parties listed in paragraph (1) of Article 4 of the Regulation in the framework of permanent relationship [1] are listed in Article 6 of the Regulation and stated below:

a) Name, surname
b) Place and date of birth
c) Mother’s and father’s name
d) Nationality
e) Type of identity document and its number
f) Address
g) Phone number, fax number, e-mail if available
h) T.R Identity Number (For Turkish citizens)
i) Sample signature
j) Information about occupation and profession

The followings shall be verified among the information above;

  • The items specified in sub-paragraph (a, b, c, d and e); via T.R. Idendity Card, T.R. Driver License, T.R. Passport for Turkish citizens; Passport, Residence Permit or other ID document accepted by the Ministry for foreigners.

  • Address; via residence certificate, any invoice arranged in three months before the transaction date for any service necessitating subscription such as electricity, water, natural gas or phone for related person, any document given by any public institution or other documents and methods accepted by the MASAK (specified in detail in Chapter 4 of the Communique)

  • Other contact information; through contacting with concerned person by using these means.

Accepting customers other than natural persons (legal persons registered to trade registry, associations and foundations) within the scope permanent business relationship and their identity information which are required to be verified, and other issues are stated in the Articles 7 to 26 of the Regulation.

According to it, within the scope of the abovementioned provisions of the Regulation and taking the MASAK Communiqué No.5 [2] 2 into account, the obliged parties are required to receive the identity information of the customer with whom they established a permanent business relationship as of 1/4/2008 and out of these information, to properly verify the ones which are required to be verified.

Example:

Bank (A) established a permanent business relationship in August, 2008 through accepting a batch of customers for opening salary accounts for the employees of a public institution. In this framework, Bank (A) shall receive the following information of the natural persons to whom the salaries will be made

- Name, surname,
- Place and date of birth,
- Mother’s and father’s name,
- Nationality,
- T.R. Identity Number (for Turkish citizens),
- Work or residence address,
- Telephone number, fax number and e-mail, if any

Out of this information, reporting the name of the persons for whom the relevant public institution will pay salaries together with the full address of the public institution to Bank (A) shall be sufficient for verifying the address information of the employees.[3]

3. Period for Making the Information within the scope of the Customer Identification of the Customers with whom a Permanent Business Relationship was established before 1/4/2008 be in compliance with the Regulation

Through the Provisional Article 2 of the Regulation, the obliged parties are given time until 01/04/2008 in order that they make the information within the scope of customer identification of customers with whom a permanent business relationship was established before 01/04/2008 and who were identified in accordance with the legislation which was in effect before the referred date be in compliance with the new arrangements established by the Regulation.

Based on the authority given to our Ministry by the Provisional Article 2 of the Regulation, it has been decided that the mentioned date for the customers with whom permanent business relationship was established before 01/04/2008 will be re-determined as 01/06/2009. According to this, the obliged parties shall make the information within the scope of the customer identification of the customers with whom they were in permanent business relationship by 1/4/2008 be in compliance with the Regulation until 01/06/2009.

On the other hand, in the scope of permanent business relationships established before 01/04/2008, in case where there is no transaction required by the customer from this time till 01/06/2009, it is required to make the information be in compliance with the Regulation which is in the scope of customer identification on customers on the date of customer’s first transaction and before the transaction is carried out (including the non-face to face transactions) at the latest as of 01/06/2009.

Example:

Mr. (X) opened a drawing account in Bank (B) and carried out no transaction relating to this account until the date 15/11/2008 and also deposited money to this account on the mentioned date. In this context, the Regulation was not in force on 15.07.2005 on which Mr. (X), a customer of Bank (B) which is an obliged party in accordance with Article 4 of the Regulation, opened a drawing account in Bank (B). As a consequence, Bank (B) will make the information on Mr. (X) received in the scope of customer identification be in compliance with the Regulation until 01/06/2009.

If Mr. (B) did not require any transaction relating to account abovementioned from 01/04/2008 up to 01/06/2009, the information within the scope of customer identification would be in compliance with the Regulation on the first transaction date after 01/06/2009.

4. Address Confirmation Required Related to Natural Person Customers by Obliged Parties

It is necessary to make the information, which is in the scope of customer identification in case of existing a permanent business relationship between the obliged party and natural person customer as of 01/04/2008, be in compliance with the information required in establishment of permanent business relationship to be done after 01/04/2008, if it is not comfort with the mentioned information, it must be harmonized in accordance with the Regulation by the obliged party.

In this context, in the scope of the permanent business relationship established between the obliged party and the natural person customer whether before the date 01/04/2008 or after this date, it is possible for obliged party to verify the address information of natural person customer through one of the following documents; 

  • certificate of residence,

  • any invoice drawn up within the previous three months from the date of transaction for a service requiring subscription such as electricity, water, natural gas, telephone (including electronic invoices which can be verified by obliged parties that it is belonging to relevant institutions),

  • any document issued by a public institution,

  • Lists including address information related to subscribers kept by quasi public institutions such as BEDAŞ (Entity of Electricity distribution) and ASKİ (Entity of Water Distribution) or telecommunication companies which gives telephone subscription service, provided that they give the information of the last three months,

  • Any invoice drawn up within the previous three months for a service requiring subscription such as electricity, water, natural gas, telephone on the name of a third person on condition that the customer submits a valid document (e.g. certificate of marriage) demonstrating the relationship between the person on whose name the invoice was drawn up,

  • For major persons residing with their parents, invoice drawn up within the previous three months for a service requiring subscription such as electricity, water, natural gas, telephone on the name of one of the parents,

  • For major persons residing in dormitories, letter to be taken from their schools or dormitories demonstrating their address,

  • In the event that a notification is sent to customer’s address through registered mail, a document showing that the notification was sent to the customer,

  • For Banks only, minutes of credit card delivery showing that the customer was found at the address which he/she had given,

  • Minutes showing that the deliveries sent by obliged parties to their customers was delivered at the submitted address to the customer personally.

The originals or notarized copies of the above listed documents are not required; legible photocopies or electronic images are acceptable.

The customer is not required to submit these documents personally by hand. The documents may be submitted by a third person or through means such as post, fax, e-mail, e.t.c.

Obliged parties, on the other hand, shall make the required effort to inform their customers of the above mentioned issues using appropriate means (post, e-mail, telephone, putting up announcements in centers and/or branches, web sites, e.t.c.)

The above has been notified.


[1] A business relationship that is established between obliged parties and their customers through services such as opening an account, lending loan, issuing credit cards, , and that is permanent due to its characteristics.

[2] Published in the Official Gazette No. 26842 on 09.04.2008

[3] For also business relationships established before 01.04.2008 by accepting a batch of customers, if the names of the persons to whom salaries will be paid and the full address of the institution is given to the bank as shown in the example and by those listed in chapter (2.2.3) of MASAK General Communiqué No. 5, this shall be sufficient for address verification of those employees.