This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS SECTION 01 OF 02 ANKARA 000805 
 
SIPDIS 
 
JUSTICE FOR OIA, AFMLS, AND NDDS 
TREASURY FOR FINCEN 
DEA FOR OILS AND OFFICE OF DIVERSION CONTROL 
EUR/SE; INL 
 
E.O. 12958: N/A 
TAGS: SNAR KTFN PTER TU
SUBJECT: 2004-2005 INTERNATIONAL NARCOTICS CONTROL STRATEGY 
REPORT (INCSR) FOR TURKEY: ADDITIONAL INFORMATION 
 
REF: A. ANKARA 423 
 
     ¶B. CUMMINGS - LOSBANOS E-MAIL 2005 11 FEBRUARY 
     ¶C. 2004 STATE 254401 
     ¶D. THOMPSON - LOSBANOS E-MAIL 2005 25 JANUARY 
 
¶1. As reported in ref a, Post has ascertained additional 
information for the 2004-2005 International Narcotics Control 
Strategy Report (INCSR) section on money laundering and 
financial crime.  This information follows the corrections 
that were e-mailed (ref b) to the Department in draft form. 
 
 
¶2. Post obtained answers to the following questions in ref c 
from Turkey's Financial Crime Investigation Board (MASAK): 
 
--Question 32: Has the country enacted secrecy laws that 
prevent disclosure of client ownership information by 
domestic and offshore financial services companies to bank 
supervisors and law enforcement authorities?  Answer: 
According to anti-money laundering law Article 5, public 
institutions and establishments, natural persons, and 
corporate bodies are obligated to submit information and 
documents as well as adequate supporting information upon the 
request of Turkey's Financial Crimes Investigation Board, 
MASAK, and the other authorities specified in Article 3 of 
the law.  Natural persons and corporate bodies from whom 
information and documents are requested by MASAK and other 
relevant authorities may not refrain from submitting 
information and documents by claiming the protection provided 
by privacy provisions in special laws, provided that the 
provisions related to the right of defense are reserved. 
 
--Question 34: Please describe cross-border currency 
reporting requirements, including those that apply to cash 
couriers.  Answer: Generally speaking, Turkey does not have 
foreign exchange restrictions.  However, Turkey does have 
cross-border currency reporting requirements.  Banks and 
special finance institutions must inform authorities, 
determined by the Ministry of Finance, within 30 days from 
the date of transfer, about transfers abroad exceeding USD 
50,000 or its equivalent in foreign currency notes (including 
transfers from foreign exchange deposits)-excluding payments 
for imports and invisible transactions as well as capital 
exports.  Travelers may take up to USD 5,000 or its 
equivalent in foreign currency notes out of the country. 
Non-residents, residents, and those Turkish citizens working 
abroad who are still considered residents of Turkey and 
declare it upon arrival who present a document indicating 
that they purchased foreign exchange from banks and special 
finance institutions within the framework of the regulations 
on invisible transactions, may freely take abroad foreign 
currency notes whose value exceeds USD 5,000. 
 
--Question 63: Can legitimate businesses be seized if used to 
launder drug money, support terrorist activity, or are 
otherwise related to other criminal proceeds?  Answer: 
According to anti-money laundering law Article 7, whoever 
commits a money laundering offense shall be sentenced to 
imprisonment from two to five years and shall incur a heavy 
fine of double the amount of the money laundered and all the 
property and assets in the scope of the dirty money, 
including returns derived from them.  In cases where property 
and assets could not be seized, the corresponding value of 
the property and assets shall be subject to confiscation. 
With regards to those supporting terrorist activity, the 
Council of Ministers, by taking into consideration the lists 
of terrorist organizations, persons and entities issued by 
the Sanctions Committee in accordance with the relevant UN 
Security Council Resolutions, promulgated a decree 
(2001/2483) on December 22, 2001 to freeze all the funds, 
financial assets, economic resources, rights and claims, and 
the contents of safe deposit boxes of these terrorist 
organizations, persons and entities.  The Council of 
Ministers also mandated permission from the Ministry of 
Finance for all transactions related to these assets. 
Furthermore, according to Article 7, paragraph 4 of the Law 
on the Fight Against Terrorism, the activities of 
associations, foundations, and unions which are found to have 
lent support to terror movements will be prohibited and they 
will be dissolved by the decision of the concerned court. 
The assets of such institutions will be confiscated. 
 
--Question 68:  What government entities are responsible for 
tracing, seizing assets and freezing assets?  Is there a 
duration of time ascribed to the action of freezing, after 
which the assets are released?  Are frozen assets 
confiscated?  If yes, by what government entity?  Answer: 
According to Article 9 of the anti-money laundering law, if 
there is serious circumstantial evidence about money 
laundering, the authority to give an order of freezing of 
claims and rights in banks and non-bank financial 
institutions as well as in real and other legal persons, 
including the values existing in deposit boxes; annulling the 
right of disposition completely or partially; the seizure of 
property, negotiable instruments, cash and other valuables; 
holding the assets in custody and taking other precautionary 
measures on claims and rights, belongs to the Court of 
Peace*a minor arbitration court for petty offenses*during 
the preliminary investigation and to the Court during the 
trial.  Requests for precautionary measures are concluded 
immediately as a result of the evaluation of documents and at 
the latest within 24 hours.  Public Prosecutors may also 
decide to freeze claims and rights in cases where it is 
necessary to avoid delay.  The Public Prosecutors' Office 
notifies the Court of Peace about the decision within 24 
hours at the latest.  The Court of Peace decides, at most 
within 24 hours, whether to approve the decision or not; in 
cases of non-approval, the decision of the Public Prosecutor 
becomes void. 
 
There is no duration of time ascribed to the action of 
freezing, after which the assets are released.  If there is a 
conviction after the judicial process, the relevant assets 
are confiscated.  MASAK, the Turkish National Police, and the 
Courts are the government entities responsible for tracing, 
seizing assets and freezing assets.  In the past year, all 
funds, financial assets, economic resources, rights and 
claims of 241 individuals and institutions have been listed 
under the Council of Minister,s Decrees to be frozen on the 
grounds of being connected to terrorist organizations or 
terrorist activities.  One individual and two institutions 
were found to have assets in Turkey.  All of the 
individual,s and the two institutions, funds, financial 
assets, economic resources, rights and claims have been 
frozen by relevant GOT authorities. 
EDELMAN