New era for high-value money transfers: Explanation and documentation requirements introduced
A new control mechanism is being introduced for large-sum banking transactions. From now on, providing an explanation will be mandatory for money transfers exceeding 400,000 TL within a single day. For larger amounts, declaration forms and additional documentation will be required.
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In order to prevent financial crimes The Financial Crimes Investigation Board (MASAK) is implementing a significant new practice. High-value money transfers, particularly those made via internet and mobile banking as well as ATMs, will now be subject to stricter oversight. The change aims to ensure transparency in large financial movements and prevent illegal activities.
The updated regulation on money transfers aims to make financial transactions more traceable. Restrictions have been increased to enhance effectiveness in combating crimes such as money laundering and illegal betting.
DAILY TRANSFER LIMIT INCREASED
The mandatory explanation threshold, initially announced as 200,000 TL, has been raised to 400,000 TL following further assessments. From now on, for transfers totaling 400,000 TL or more within a single day, senders will be required to provide an explanation of at least 20 characters. If the explanation field is left blank or the entered text is insufficient, the transaction will not be processed.
TRANSFER CATEGORIES EXPANDED
With the new regulation, specific categories will be added to the system to clarify the purpose of the transferred funds. During the transaction, users will be required to select one of these categories to declare the reason for the transfer:
- Real estate purchases
- Vehicle purchases
- Debt repayment
- Donations
- Insurance and healthcare expenses
- Crypto asset transactions
- Gambling payments
- Consulting services
For transfers designated as 'other' or 'individual payments,' more detailed explanations may be requested. This will allow for easier analysis of the origin of transactions, accelerating the detection of potentially suspicious activity.
ADDITIONAL DOCUMENTATION REQUIREMENT FOR LARGE AMOUNTS
Additional audits are being implemented not only for transfers over 400,000 TL but also for higher amounts. For transactions between 2 million TL and 20 million TL, a 'Cash Transaction Declaration Form' must be completed. For transfers exceeding 20 million TL, documentation regarding the source of funds will be required.
This new system envisions a stronger oversight mechanism aimed at both increasing financial transparency and preventing money laundering.