A QUICK OVERVIEW OF THE RESULTS April 2013, Vietnam 1. Musa KAYRAK, Senior Auditor, CISA 2. Taha AKGUN, Auditor

0 Prime Ministry Inspection Board (ACA) 0 Coordination authority 0 Implementation of the National Anti-Corruption Strategy, 0 Monitoring of funds provided by European Union and the other International Institutions

0 Current prevalence of corruption in Turkey : low(Q1) 0 Comparison with past: lower than previously (Q2) 0 Unpredictable patterns (Q7) 0 Occurs equally both in public and private (Q8) (????) 0 Intolerance public (Q5) 0 Moderetly strong actions taken by the government (Q6) 0 Most common types: Nepotism>abuse of position/power>criminal breach of trust >bribery (Q15) 0 Sectors mostly affected: Local Governments/Municipalities> Energy> Agriculture> Customs>Health(Q16)

0 Mostly probable occurence: Procurement contracts> Licencing>public funds disbursement procedures (Q17) 0 procurement contracts  Highest probability of corruption.  High Complexity  Improvement: Amendments to the Public Procurement Law 0 Money from corruption  Investing in real estate and bank deposits (18)

0 Whistle blowing: very important and effective (Q24& Q25) 0 Somewhat serious impact on government’s budget, citizens and private sector (Q26, Q27 & Q28) 0 Root causes of corruption(19) 0 Culture, customs and habits of giving bribes to get things done (He who touches honey is compelled to lick his fingers.) 0 Absence, weakness or failure in regulatory and legal systems to combat corruption 0 Low salary levels 0 Comment (from Board): Lack of the strict audit system

0 Petty corruption vs Grand corruption 0 Petty corruption: Moderate(Q10), among rank and file employees (Q11) 0 Grand corruption: Low (Q13), among powerful government offcials (Q14), (Why??? due to strong immunity regulations for high ranking public officials) 0 Petty corruption >Grand corruption (Q9)

0 The results of indexes conducted by International Institutions as the ranking of Turkey (TI, OBI etc.) : Lower level of corruption (Q1&Q2) 0 STILL, reflection of corruption in CPIs and other surveys(by TI &GI): NOT FAIR (Q3&Q4) 0 CPI does not tell us the full story of corruption in a country. 0 Lower score does not necessarily means it is more corrupt nation 0 Global Corruption Barometer Survey: 59 % of Turkish people think that government takes effective actions in the fights against corruption.

Recent Legislations 0 Adoption of National Anti-Corruption Strategy, 0 National Anti-Smuggling Strategy, 0 Ratification of the United Nations Convention Against Corruption, 0 Right of information Act, 0 Prevention of Laundering Proceeds of Crime Act, 0 Public Procurement Law, 0 New Turkish Penal Code, 0 New Public Financial Management and Control Law, 0 New Law on TCA.

Reforms for reducing bureaucracy and the regulatory burden on companies. 0 simplifying company establishment procedures, 0 reducing permits requirements 0 creating a single company registration form. 0 Establishment of the Investment Support and Promotion Agency of Turkey 0 Board of Ethics for Public Officials: Authorized to investigate General Manager or higher ranking public officials in terms of complying with ethic rules.

0 The Financial Crimes Investigation Board 0 making policies, 0 carrying out investigation, 0 conveying the information to relevant authorities etc.

0 Money laundering in Turkey 0 Serious(Q1) 0 tends to increase in recent years (Q2) 0 tends to be more sophisticated (Q3) 0 occurs public and private entities (Q4) 0 The fields that have highest risk of money laundering(Q5) 0 Trade 0 Real Estate 0 Construction 0 Finance, Banking

0 Common methods of money laundering: Cash Transaction, Real Estate, Business, Money Exchange, Project, Through Financial Institutions, Stock, Through Internet (Q6) 0 The most favorable environment: Using cash and illegal money transfer (Q7) 0 Offences linked with: Embezzlement, corruption, buying and selling of illegal goods, terrorism, drugs and smuggling (Q8) 0 The main reason: hiding illegally accumulated wealth (Q9) 0 Money laundering mainly leads to increased crime and corruption (Q10)

0 Money laundering  serious economic and social consequences (Q11) 0 Money laundering seriously affects the national security, international reputation, economy and economic reforms(Q12) 0 Most significant incidences of AML occured 2007 to smuggling activities in customs 0 virtual and internet gambling(Q13) 0 Overall: Turkey is committed to do its best for the purpose of preventing and detecting money laundering and financing of terrorism(Q15).

1. Time pressure /Need for better complying with the time schedule 2. Better to use multiple choice or close ended questions 3. Better communication: Need for quick responses to s 4. Several invalid adresses: Update the list 5. Share the results of the questionnaires with all participant countries in a timely manner

THANK YOU FOR YOUR ATTENTION