71st International Atlantic Economic Conference

March 16 - 19, 2011 | Athens, Greece

Decreasing Fraud in Financial Markets: Recent Developments in Turkey

Thursday, 17 March 2011: 14:30
Kiymet Tunca Caliyurt, Ph.D. , Accounting and Finance, Trakya University, Edirne, Turkey
After 1980’s, especially in the developed countries, fraud in financial market has become one of the most important issue. Stakeholders, especially shareholders, have shocked with news on fraud scandals came from well-organised corporations.  However, public did not heard about news on fraud from developing and underdeveloped countries as developed ones. Developed countries has understood that they cannot solve “fraud” problem by themselves and it is not enough to make their house clean only. Developing countries use developing and underdeveloped countries as production base so they need to force them to obey international rules to prevent fraud. Turkiye is one of the developing country which should implement regulations on fraud. Country made big attack for being accountable and transparent country as a candidate member country in Europen Union.  Under the harmonization studies to European Union, Turkey revised a lot of regulations and also published new ones  which effect directly fraud prevention in financial markets after 2000. New Turkish Trade Code has been promulgated by Turkish Grand National Assembly in January 2011 which will force small and medium entrprises to have external auditing service for their financial statements. New code will effect business life in Turkiye deeply. Additionally there are a lot of instutions related to prevention fraud in Turkey published new regulation after 2000 like Banking Regulation and Supervision Agency, Security and Exchange Commission, Capital Markets Board of Turkey, The Assocation of Capital Market Intermediary Institutions of  Turkey,  The Financial Crimes Investigation Board, Energy Market Regulation and Supervision Agency, Association of the Insurance and the Reinsurance Companies. In this study, harmonization studies of Turkiye on decreasing fraud have been searched. As a result, it is founded that Turkey has achieved on promulgation and implementation regulation to decrease fraud in financial market.