July 12, 2024

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New Legislation to Combat Versus Proliferation of Funding Weapons of Mass Destruction

9 min read
New Legislation to Combat Versus Proliferation of Funding Weapons of Mass Destruction
New Legislation to Combat Versus Proliferation of Funding Weapons of Mass Destruction

It is predicted that the Legislation No. 7262 will be authorised by the President of the Republic of Turkey and printed in the official gazette incredibly before long and it will enter into power on the publication date, except for the variations launched to the Turkish Professional Code (“TCC”) which will develop into powerful on April 1, 2021.

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In this write-up, our goal is to expose major improvements launched with the Legislation No. 7262.

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Adoption of Sanctions of United Nations Protection Council

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Regulation No. 7262 regulates procedures and concepts relevant to implementation of sanctions of the United Nations Safety Council (“UNSC”) regarding avoidance of financing of proliferation of weapons of mass destruction. 

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Article 2 of the Law No.7262 forbids the following, depending on scope of the conclusions of the UNSC: (i) selection of or providing any resources to or for the benefit of or coming into into joint ventures or other company relations with the individuals or entities said in the decisions of the UNSC or folks or entities managed right or indirectly by them or acting on their behalf or for their account and (ii) selection of or providing any funds to or for the advantage of entities which are related to the nuclear, ballistic missile plans or other things to do forbidden with the decisions of the UNSC or people or entities controlled directly or indirectly by them or acting on their behalf or for their account. 

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In addition, persons, entities or companies said in the conclusions of the UNSC or individuals or entities controlled right or indirectly by them or acting on their behalf or for their account can’t open up illustration places of work, have out routines in Turkey right or indirectly. In addition, banks of this sort of events simply cannot include branches or representation workplaces or enter into joint ventures in Turkey and it is also forbidden to enter into joint undertaking, money partnership or establish correspondent lender romance with their banking institutions.

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Until permitted by the UNSC, depending on the scope of the relevant choices import, export and transit of substances, products and devices and, transfer of know-how or contribution or support to nuclear routines or the enhancement of nuclear weapon launch devices are also forbidden.

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This new legislation entitles the President to freeze assets and marine transportation cars of folks, entities or group said in the conclusions of the UNSC or individuals or entities managed straight or indirectly by them or performing on their behalf or for their account. The Regulation No. 7262 also stipulates imprisonment, judicial fines and administrative fines in situation of breach of obligations linked to implementation of the sanctions of the UNSC.

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Support Selection

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Support selection procedures are normally regulated in the Help Assortment Legislation No. 2860 (“Law No. 2860”).

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With the Law No. 7262, launching online help campaigns are also provided within just the scope of the Law No. 2860, and so if it is understood that an unauthorized on the net support campaign is carried out, suitable governorship and the Ministry of Inside will be approved to ask for elimination of the written content in just 24 hours, or to ask for criminal courtroom of peace to get access ban by if they are unable to achieve the marketing campaign service provider or notification can’t be delivered owing to complex factors.  

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Report 10 of the Regulation No. 7262 established forth administrative fines for unauthorized aid collections.  

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Novelties Regarding Associations

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Law No. 7262 consists of branches of associations, bigger corporations of associations and foundations, branches and illustration places of work of the associations and foundations which have headquarters overseas and other non-revenue companies within the scope of the Regulation No. 5253, and thus all of these entities turn into issue to the provisions of the Law No. 5253 on Associations (“Law No. 5253”).

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Posting 12 of the Regulation No. 7262 sets forth that all those convicted of crimes inside of the scope of the Legislation on the Avoidance of Funding of Terrorism No.6415 (“Law No. 6415”) or of crimes of drug trafficking and laundering felony proceeds are prohibited from having business in the organs of associations other than the common assembly, even if the earlier sentences of all those individuals ended up pardoned. In the party that an investigation is initiated towards all those who operate for an affiliation, owing to the crimes of producing and trade of medications or stimulants or of laundering the proceeds of criminal offense within just the scope of the routines of the affiliation, Write-up 15 of the Regulation No. 7262 allows the Ministry of Inside to dismiss these people today or may possibly immediately use to the court docket to request short-term suspension of actions of the affiliation.

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As for each Posting 19/2 of the Legislation No. 5253, the Ministry of Interior or local authorities may audit associations to identify no matter whether they have out their functions in accordance with the reasons stated in their by-rules and if they keep their textbooks and data in line with the legislation. Within the scope of these audits, facts and documentation could be requested from general public institutions and companies, as nicely as serious and lawful folks “limited to the scope of audit” including banking institutions and these people are necessary to present data and files on the ask for of the auditors.

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Post 14 of the Law No. 7262 regulates aids to be made overseas by the associations and requires prior notification to the appropriate area authority. The system and material of the notifications will be controlled by a secondary laws.

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Amendments to the Legislation No. 5549 on Prevention of Laundering of Crime Revenues (“Law No. 5549”)

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Report 20 of the Law No. 7262 extends scope of the “obliged parties” involves impartial lawyers to operate Know Your Client Checks and money teams are also involved within just the scope of the Regulation No. 5549.

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Accordingly, impartial attorneys will be subject matter to provisions of the Law No. 5549 for selected transactions, particularly: obtain and sale of immovable qualities establishment and abolition of minimal actual legal rights on immovable homes incorporation, merger, management, assignment and liquidation of organizations, foundations and associations and money transaction with regard to such management of banking companies, protection and all type of accounts together with assets in these accounts.

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The foregoing scope excludes (i) the info received with regard to 1st paragraph of Short article 35 of the Legal professional Regulation No. 1136 (i.e. judicial strategies) and (ii) information and facts acquired due to specialist experiments executed within just the scope of different dispute resolution approaches. The foregoing will also be applicable to the extent that it does not violate any other regulations in terms of the appropriate to protection.

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The other addition to the scope of the Regulation No. 5549 “financial group” is also described in Article 20 of the Legislation No. 7262 as follows a group consisting of economic institutions resident in Turkey and their branches, companies, associates and professional brokers as very well as very similar affiliated models, which are affiliated with an establishment whose headquarters is in Turkey or abroad or less than handle of these types of institution.

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It is significant to observe that Turkish lawmakers supposed to involve unbiased attorneys within just the scope of anti-money laundering laws for the related transactions and a very similar provision was incorporated in the Regulation on Actions About Avoidance of Laundering of Criminal offense Revenues and Financing of Terrorism. Having said that, the Council of State requested suspension of execution for this provision and thereafter, this provision was repealed by 10th Chamber of Council of Condition with the merit no. 2008/1675 and final decision no 2013/508 on the grounds that this provision was released with a regulation and not with the Law No. 5549.

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Article 23 of the Legislation No. 7262 has improved quantities of administrative fines to be imposed in circumstance of breach of provisions of the Legislation No. 5549. An administrative fantastic of Try out 30,000 may possibly be imposed on people who fail to satisfy obligations relevant to consumer identification and periodic reporting. More, an administrative fantastic of Attempt 50,000 may possibly be imposed on the folks breaching obligation connected to suspicious transaction reporting. If the obliged occasion is a financial institution, finance corporation, factoring firm, cash financial institution, monetary leasing organization,  insurance and reinsurance organization, pension company, cash current market establishment, licensed establishment as perfectly as payment and digital dollars institutions and other money establishments to be determined by the regulation, these administrative fines will be multiplied by two.

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Obliged get-togethers, who are unsuccessful to comply with the obligations stated in Article 5 of the Regulation No. 5549, which are associated to instruction, interior manage and threat management, are supplied at least 30 days in order to take out deficiencies and to consider necessary actions. If the obliged parties do not take away deficiencies and acquire required steps then an administrative high-quality of Test 500,000 may be imposed. With the notification of the administrative high-quality, a new interval, not much less than 60 times, is granted. In the occasion that the deficiencies are not removed at the stop of this grace time period, an administrative wonderful that is 2 times the first administrative fine may possibly be used. In circumstance the deficiencies are not corrected in 30 times as of the notification of the 2nd administrative wonderful, things to do of the obliged get together may possibly be limited or suspended for a sure period of time or to acquire measures for the cancellation of the activity permit certification. In addition, ¼ of the administrative fines imposed on the obliged celebration may possibly be imposed on the dependable board member or senior manager who fails to satisfy these obligations.

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Also, individuals, institutions and organizations who fail to comply with the obligations of digital notification specified in Posting 9/A of the Law No. 5549 may possibly be matter to an administrative fantastic of Test 40,000 for just about every breach.

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It is also worthy of mentioning that administrative fines within just the scope of the Legislation No. 5549 cannot be imposed immediately after 8 decades as of the date of breach of obligation.

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Alterations to the TCC

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With the amendments designed to the TCC, the Ministry of Trade turns into authorized to introduce an obligation to retain resolution guides and share ledger electronically.

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It is also stipulated that holders of the bearer share certificates in a joint stock company and the info as to the shares have to be notified the Central Registry Company (“MKK”). This is a significant novelty in terms of Turkish company legislation follow. An administrative good of Check out 20,000 may well be imposed on these who fall short to fulfill this notification obligation. In this regard, only folks who demonstrate that they have the bearer share certificates and have informed MKK about their possessions will be approved to workout their shareholding legal rights from the company.

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Similarly, transfer of bearer shares will become helpful on the notification to be made to the MKK by the transferee shareholder. An administrative high-quality of Try out 5,000 might be imposed on people who fall short to satisfy this notification obligation.

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Beneath Post 34 of the Law No. 7262, these who have bearer shares should utilize to the joint-inventory companies with their share certificates and then, the board of administrators of these types of companies notifies the Central Registry Agency about these shareholders and their bearer share certificates in five (5) company days. This sort of notification approach has to be completed right until December 31, 2021. If the shareholders do not apply to the joint-inventory company, they are unable to use their shareholding legal rights until eventually the required application is produced. The foregoing administrative fines are imposed on individuals who fail to satisfy this notification obligation.

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Amendments to the Law No. 6415

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The definition of the property within the scope of the Regulation No. 6415 has been extended with Posting 35 of the Regulation No. 7262. Appropriately, property are described as follows: (i) money and cash flow that are owned or possessed by serious and legal persons or beneath their direct or oblique manage and any gain and worth derived from them or from their conversion and (ii) cash and revenue that are owned or possessed by genuine or lawful person performing on behalf or account of a serious individual and any gain and value derived from them or from their conversion. The Regulation No. 7262 authorizes the Ministry of Finance and Treasury to freeze the explained “assets” and removal of these status under the selected circumstances stipulated in the Legislation No. 7262.

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(1st printed by Mondaq on December 31, 2020)

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By Gonenc Gurkaynak, Companion, Nazli Nil Yukaruc, Companion, Selen Ernanli Sakar, Associate, and Busra Ustuntas, Associate, ELIG Gürkaynak Attorneys-at-Law

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