Newsletter on The Regulation on Liabilities of Lawyers
The Law on Prevention of Laundering of Crime Revenues numbered 5549 and dated October 11, 2006 (“Law”) has been amended .
With the amendment to article 2 of the Law, self-employed lawyers have also become one of the “liable parties” within the context of the Law. Therefore, self-employed lawyers have become subject to the requirements under the Law in case of execution of financial transactions with regards to sale and purchase of real estates, establishment and revocation of limited rights in rem, incorporation, merger, management, transfer and liquidation of companies, foundations and associations; management of banks, negotiable instruments and all kinds of accounts and the assets included therein.
As a result, lawyers are now obliged to fulfil the “know your client” obligations such as identification, recognition of ultimate beneficial owner, monitoring of the status of the client and their transactions, reporting of suspicious transactions, provision of information and documents, preservation and submission. In case of failure to fulfil the aforementioned obligations, administrative fines regulated under the article 13 and following articles of the Law, as well as judicial penalties (imprisonment, judicial fine, etc.) will be applicable.
[1] The respective amendment was made with the Law on the Prevention of Financing of Propagation of Weapons of Mass Destruction numbered 7262, published in the Official Gazette numbered 31351 and dated December 31, 2020.