Customer Recognition Obligation and Measures

Customer recognition involves financial institutions focusing on the transactions carried out by their customers, identifying the real beneficiary, obtaining information about the customer's financial profile, establishing customer acceptance policies, monitoring customer accounts as long as the business relationship continues, and controlling compliance with the purpose of the transactions. 
According to the MASAK Measures Regulation, obliged parties are obliged to implement one or more or all of the following measures, depending on the degree of risk, within the scope of customer identification, "transactions requiring special attention", "taking measures against technological risks" and "relations with risky countries" and in "high-risk" situations that they will identify within the framework of a risk-based approach."

These measures are

Obtaining additional information about the customer and updating the identity information of the customer and the real beneficiary more frequently,
To obtain additional information about the nature of the employment relationship,
Obtaining as much information as possible about the source of the assets subject to the transaction and the funds belonging to the client,
Learn about the purpose of the process,
Making the entry into a business relationship, the continuation of an existing business relationship or the execution of a transaction subject to the approval of a senior official,
To increase the number and frequency of controls applied and to keep the business relationship under close supervision by identifying the types of transactions that require additional controls,
It is determined as requiring the first financial transaction in the establishment of a continuous business relationship to be made from another financial institution to which the principles regarding the recognition of the customer are applied.

Masak has explained the situations in which the measures should be applied with the following articles;

Transactions requiring special attention,
Taking measures against technological risks,
Risk countries and relations with them,
High-risk situations,
Customer risk, 
Service risk,
Country risk.
If your institutions and organizations do not adhere to their regulatory compliance obligations, they may face sanction risks and loss of reputation. In order to prevent this situation, the use of anti-money laundering products provides significant benefits. With anti-money laundering products, you can recognize and monitor your customers and create suspicious transaction risk scenarios to keep your organization away from sanction risks. As a result, you can act with confidence in the audits of relevant institutions (Masak, Ofac, etc.).