Law No:  55/1999

Short Title

1. This Law may be cited as the Prevention of Money Laundering Law.

Interpretation

2. In this law unless the context otherwise requires :

"Bank” means, banks operating under Banking Law of the Turkish Republic of Northern Cyprus,

"Ministry" means, the Ministry responsible for Economic and Financial Affairs,

"Real persons or corporate bodies responsible for giving information" means, banks, co-operative societies, finance companies, insurance and reassurance companies, intermediary corporations of capital markets, portfolio management companies, administrators of investment funds, those engaged in the sale and purchase of precious metals, stones or jewellery, authorised institutions specified in the Foreign Exchange Law, those engaged in the sale and purchase of immovable property for the purpose of trade and those acting as intermediaries of same, operators of games of change, foreign exchange bureaus, State Lotteries Administration, accountants and/or auditors.

“Not negotiable and order cheque or payment order” means, cheques or other payment orders which the payee may only lodge to his account with a bank.

"Office" means, the office of Money, Foreign Exchange and Development Fund.

"Illicit Money" means, all kinds of material benefit and value obtained from; trafficking in or trade of narcotic drugs and psychotropic substances which affect the psychic state; unlawful possession, hiding, smuggling or trade of fire arms, parts of same and ammunitions; organ and tissue transplant; man slaughter offence; use of a minor or one who is mentally retarded or of any other person against his will for any unlawful purpose; secure benefits from a person for international terrorism through black mail or brute force; spying and industrial or technological spying; all kinds of money and valuable documents obtained by bribery and corruption and efforts and attempts to obtain goods and income in the manner enumerated above.

"Money Laundering" means, the evaluation of illicit money acquired by persons through commitment of predicate offences enumerated above for the purpose of securing compliance with the law; the acquirement by others of illicit money known to have been obtained in this manner; possession, use by acquirers or by others, change of hands, concealment or its removal abroad; for the purpose of assisting the perpetrator to evade the legal consequences of the offences stated above, the change of the source or place of illicit money, actions to obviate the proof thereof and attempts to this end.

"Board" means, Illicit Money Supervision Board.

"Payee" means, real person or corporate body to whom payment will be effected.

"Cash Money Limit” means, 20,000 US dollars and/or its equivalent in other currencies including legal tender.

"Legal Tender" means, Turkish Lira which is in circulation as official money in the Turkish Republic of Northern Cyprus.

Second Part

Provision regarding cash money limit,

Identification and giving of information

Cash Money Limit

3. Persons and corporations obliged to give information shall inform the Office by lists işlemlerin, kimlerin nam ve hesabına yapıldığını showing cash transactions in excess of cash money limit and in whose name and account they were made, within the first week following the month during which the transaction took place. As regards incoming and outgoing transfers they shall inform the Office solely in respect of transactions about which they have doubts. The procedure and principles regarding this information will be arranged in accordance with notification to be published by the Ministry in the Official Gazette.  

Transactions exceeding cash money limit

4. All payments exceeding cash money limit shall be effected by not negotiable and crossed order cheques or by not negotiable and crossed payment orders.

The obligation to identify

5. Officials and persons and corporate bodies obliged to give information are required to identify their clients or parties to the transaction. Also, regarding payment order instructions in the name of a payee the identification of the person giving the order and recording thereof is obligatory. Arrangements regarding identification are made by the Ministry.

Documentsacceptable in identification

6. Identification is effected by obtaining a convincing photocopy of the identity card, passport or driving licence issued by official departments. As regards corporate bodies a copy of the document regarding registration, a document showing that the person acting in the name of the corporate body is empowered to represent the corporate body and the document showing authorised signatures or the circular of authorised signatures.

Applications

7. Where banks are suspicious they are obliged to identify persons applying to them for business irrespective of whether or not the cash money limit is exceeded and to notify this information forthwith to the office or other empowered bodies specified by the Office. In the light of the decision to be given by the Office at the end of the investigation the matter may be referred to the Illicit  Money  Supervision  Board to  start legal proceedings.

Incoming Transfers

8. As regards bank transfers in favour of residents of the Turkish Republic of Northern Cyprus payment in cash may not be made to the payee in excess of the cash money limit. Incoming transfer may only be lodged into the account of the payee with the bank or payment may be made by cheque.

Outgoing Transfers

9. Where bank transfers to be made by residents of the Turkish Republic of Northern Republic of Northern Cyprus are in excess of the cash money limit the amount to be transferred must be paid to the bank by cheque or by debiting the account with the bank of the person making the transfer.