Turkey raises identity verification limits for financial transactions

New regulations regarding the prevention of money laundering and the financing of terrorism have been implemented in Turkey, as published in the Official Gazette. The amendment significantly raises the monetary thresholds for mandatory identity verification across various financial sectors, including banks, factoring companies, capital market institutions, and jewelers.

The threshold for identity verification in cash, foreign exchange, and jewelry transactions has been doubled from 185,000 TL to 370,000 TL. For electronic transfers and crypto-asset transactions, the limit has also increased from 15,000 TL to 30,000 TL.

Additionally, the regulation introduces new rules for digital banking. Financial institutions may now bypass the requirement for physical signature samples during internet or mobile transactions if the customer is verified via a one-time password (SMS OTP) sent to a previously verified mobile number. This flexibility is contingent upon the method being appropriate for the transaction's risk level and providing sufficient security against unauthorized access. The regulation also aims to reduce bureaucracy by simplifying audit reporting processes for financial institutions.