A QUICK OVERVIEW OF RESULTS 28-30 August 2013 Bangkok , Thailand

1. A QUICK OVERVIEW OF RESULTS 28-30 August 2013Bangkok, Thailand Musa KAYRAK, SeniorAuditor, CISA

2. MAIN FINDINGS REGARDING ANTI-CORRUPTION

3. RESPONDENT: Prime Ministry Inspection Board

4. PART I: NATIONAL ANTI-CORRUPTION STRATEGY AND ACTION PLANS • Stand-alone anti-corruption strategy (Q1) • Covers 2010-2014 • Official decision of the Council of Ministers • Published in the Official Gazette • Its content is as follows (Q2): • Objectives and priority areas • Public participation/education • Monitoring and assessment mechanism and criteria • Prepared with an action plan composed of followings (Q3&Q4): • Specific measures for each objective • Specific institutions responsible for the implementation of each measure • Time-frame for implementation of the plan • Institution(s) responsible for co-ordination, implementation and reporting on the action plan

5. PART II: ANTI-CORRUPTION AGENCY • No institution called as Anti-Corruption Agency but (Q7) • Coordination authority: Prime Ministry Inspection Board • Authorities with anti-corruption mission: The Financial Crimes Investigation Board, Council of Ethics, Ombudsman, Public Procurement authority • The TCA is not mentioned (???) • A hotline, website form and e-mail address for whistle-blowers (Q10)

6. Main functions of the ACA(Q8): • Collect, centralize and exploit the denunciations • Conduct investigations • Raise public awareness about the fight against corruption • Identify the causes of corruption and to propose to the competent authorities of measures to help eliminate it • Draw a risk map of corruption in the country • Research and analysis on corruption • Research and analysis on conflict of interest in the public management

7. PART III: LEGAL BACKGROUND • A «Speciallaw on Anti-Corruption» and the CriminalLaw criminalize corrupted activities (Q11) • Law on DeclarationofAssets by public officials(Q16) • Code of Ethics of public officials(Q15) • Accounting and auditingstandards for both public and private sectors (Q17) «Public Procurement Law and Public Financial Management and Control Law plays a vital role as well» • As for financing of political parties(Q14): • Inappropriate answer • Art. 69 of the Constitution; The Law on the Political Parties (art. 74&75); Bylaws of the Constitutional Court.

8. Detective actions >Preventive policies and measures > Punitive measure (Q13) • Acc. to the answers, Turkey needs to enact new legislation to better fight with influence peddling(Q12) • Public officials have legal obligation for public officials to report corruption-related offence(Q18) • Implementation of the laws and regulations is considered as «good» (Q19)

9. PART IV: INTERNATIONAL COOPERATION • Signed the«United Nations Convention against Corruption» in 2003 and ratified by TGNA in 2006 (Q20) • Planned to review at year 4 (July 2013 – June 2014)(Q21) • Ratified the «Convention on Combating Bribery of Foreign Public Officials in International Business Transactions» in 2000(Q22) • A member of the «Group of States Against Corruption (GRECO)» since 2004(Q22) • International cooperations: Lowlevel of success (Q23)

10. PART V: PROMOTING AWERENESS AND OTHER MATTERS • EFFORTS to fight with corruption in Turkey: Much higher than past years and better prevention of corruption (Q26 & Q29) • MEDIA: To some extent, media have helped public to recognise the real situation of corruption, however, the provided information sometimes inaccurate and un-objective(Q24) • CIVILSOCIETY: Active but ineffective contribution (Q25) • EDUCATIONALPROGRAMS: General public and public officials (Q27) • ISSUES concerning anti-corruption efforts (Q28) • Corrupt people are not severely punished • Some superiors cover up for their subordinates • Lack of capacity and financial resources of anti-corruption agencies

11. MAIN FINDINGS REGARDING ANTI-MONEY LAUNDERING

12. RESPONDENT: The Financial Crimes Investigation Board

13. PART I: Legal Framework • Money laundering  a criminal offence (Q1&Q2) • Law on Prevention of Laundering Proceeds of Crime • Law on Prevention of Money Laundering • Turkish Criminal Law • Regulation on Measures Regarding Prevention of Laundering Proceeds of Crime and Financing of Terrorism • Laws and regulations in force (Q3&Q4&Q21) • Comprehensive and well-implemented

14. PART II: AML Board / Authority • The Financial Crimes Investigation Board (Q6&Q8) • directly attached to Ministry of Finance • established with the enactment of the Law on Prevention of Money Laundering in 1996 • enjoying functional independence • International cooperation • Good level of international cooperation and exchange of information (Q18) • Signed MOU with Foreign Intelligence Units (Q19) • The Board has following functions (Q9): • Developing policies and improving legislation • Data collecting, analyzing, evaluation • Supervision • Coordination • Investigations of the cases • Raising awareness in the public • Carry out researches, conducting sector-based studies etc. • Carrying out examinations on the cases • Requesting any kind of information and documents from public institutions and organizations, natural and legal persons, and unincorporated organizations. • Exchange information and documents with counterparts in foreign countries

15. Effectiveness of the measures in AML (Q10): Preventive policies and measures (regulations, internal control systems, international cooperation for deterrence, raising awareness ) >Detective actions (prosecutions, investigations, audits etc.) >Punitive measure (Implementing criminal and disciplinary sanctions etc.) Denunciation letters (Q11):Citizens denounce suspected cases of money laundering via website of the AML Board or via letter

16. PART III: Financial Institutions • obliged to comply with FATF recommendations (Q17) • required to have «Know Your Customer (KYC)» procedures (Q13) • As for the due diligence procedures(Q15): • Implementingsystems for the identification of its customer • Collecting information and assessing its customer’s AML policies and practices. • Screening its customer’s information against sanction lists issued by the government or international bodies

17. Financial institutionshave the following legal obligations to comply with concerning anti-money laundering law(Q14) • Internal controls and procedures to comply with regulatory framework concerning AML • Thorough client identification • Having an anti-money laundering officer • Client due diligence procedures • Riskfocused assessment of customer base and their transactions • Creating and regularly updating a list of red flags concerning AML • Prohibition of anonymous accounts • Employee training programs regarding AML • Independent audit/compliance function • Identification and reporting of suspiciousactivities to the appropriate authorities • Monitoringprogram for suspicious or unusual activities • Policy prohibiting accounts/relationships with shell banks • Policy of protectingemployees who report any suspicious transactions

18. Most common types of suspicious transaction reports (STR) from financial institutions (Q16): • Unusual account activities • Unusually large cash transactions • Inconsistency with the financial profile of the customer or account • Suspicious behaviours • Inconsistency between the declaration of the customer and documents • Cutting large amount of transaction into pieces • Clear evidence of illegal activities linked with a transfer • Refusals to show identification • Financial transactions involving the countries considered in the “high risk” category • Financial transactions involving the person(s) considered in the “high risk” category • Avoiding reporting obligations

19. PART V: Education, Awareness and Other matters • the role of citizen participation in fighting money laundering(Q20): • Promoting public sector transparency and accountability and citizen participationX • Complaint system/ Whistle Blower, and Denunciation√ • Trainings (Q23) • Publicofficials • Financial institutions CompulsorytrainingprogrammesaccordingtotheLaw

20. QuickNotes from intoSAINTMethodology

21. What is INTOSAINT? • SAINT stands for Self-Assessment INTegrity. • A tool developed by the Netherlands Court of Audit in cooperation with the Ministry of the Interior and the Bureau Integrity of the city of Amsterdam. • to assess their vulnerability and resilience to integrity violations and to improve integrity management. • IntoSAINT customised version to meet the specific needs of SAIs • IntoSAINT is available for members of the INTOSAI. • Lack of integrity in an SAI: • Conflicts of interests • Disclosure of confidential information • Discrimination / intimidation • Conflicting values (Public duty <> individual duty) • ……..

22. INTOSAINTWorkshop • place in an structured two-day workshop • moderated by a trainedfacilitator • cross section of employees / utilising knowledge and experience of employees • targeted at corruption prevention and leads to management recommendations to support the integrity of the organisation.

23. INTOSAINTNews • IntoSAINT is mentioned in ISSAI 5700  Draft Guideline for the audit of corruption prevention in Government Agencies, prepared by the INTOSAI “Working Group on Fight against Corruption and Money Laundering”. • The IntoSAINT-tool is part of the new AFROSAI-E Guideline on thePrevention and Detection of Fraud and Corruption. • From 27-31 May 2013 the Turkish Court of Accounts hosted the firstIntoSAINT moderator training for the Eurosai region. • Korea, Vietnam, Pakistan and Indonesia in Asosai region • The State Audit Office of Vietnam will organize an IntoSAINT moderator training in 2013 for the Asian region.

24. THANK YOU FOR YOUR ATTENTION