Turkey’s Aktif Bank Linked to Suspicious Transactions Worth $35 Million

A recent investigation has revealed a series of suspicious transactions worth $35 million between May 27 and July 1, 2014, involving Turkey’s Aktif Bank.

Investigation Reveals Series of Suspicious Transactions

According to Suspicious Activity Reports (SARs) filed with the US Department of the Treasury, Aktif Bank transferred $35.3 million from Afghan accounts in 561 transactions over a period of five weeks. The SARs stated that the entities involved could not be readily identified through internet research or the source of funds.

Connections to New Kabul Bank and Watan Oil and Gas

The investigation also revealed that the New Kabul Bank, which was embroiled in a billion-dollar corruption scandal in 2010, maintains an account with Aktif Bank. Additionally, Bank of America (BoA) filed a SAR regarding suspicious transactions initiated by Aktif Bank on behalf of Watan Oil and Gas, an Afghan company.

Concerns Raised About Potential Money Laundering and Terrorist Financing

The BoA’s SAR highlighted “potentially unusual wires” for large round dollar amounts and noted that the bank had detected a geographic disconnect between the banks involved. The US bank also expressed concern about Watan Group’s questionable history, including a 2010 investigation into its activities, which revealed that one of its subsidiaries had paid the Taliban millions of dollars in exchange for not attacking their convoys.

Aktif Bank Denies Wrongdoing

Aktif Bank has denied any wrongdoing, stating that filing SARs does not necessarily mean that the transactions were prohibited or illegal. The bank emphasized that it operates according to guidelines set by international agencies and that it is required to know its customers’ identities and whether they have been involved in money laundering or terror financing.

Concerns Raised About Potential Money Laundering and Terrorist Financing

The investigation raises concerns about the potential for money laundering and terrorist financing through Aktif Bank’s connections with Afghan companies, including Watan Group. The bank has maintained a correspondent banking relationship with BoA in New York, but stated that it no longer has any open accounts.

Bank’s Core Values Prohibit Business with Certain Industries

Aktif Bank has also stressed that it does not conduct transactions for the purpose of money laundering and that its core values prohibit business with companies from the pornography or gambling industries.