Turkey Boosts International Cooperation in Anti-Money Laundering and Counter-Terrorism Financing Efforts
Introduction
Turkey has made significant strides in enhancing its cooperation with international partners to combat money laundering and counter-terrorism financing, a recent report by the Financial Action Task Force (FATF) reveals.
The 2023 Follow-Up Report on Turkey assesses the country’s compliance with FATF Recommendations, which are designed to prevent the misuse of financial systems for illicit activities. The report provides an overview of Turkey’s progress in implementing these recommendations, highlighting areas where the country has made notable improvements and those that require further attention.
Risk Assessment and National Coordination
Commitment to Risk Assessment
Turkey has demonstrated a strong commitment to risk assessment and national coordination, with significant efforts being made to identify high-risk sectors and individuals. This is a positive step towards strengthening its anti-money laundering framework.
However, there are still some concerns regarding the effectiveness of Turkey’s risk-based approach, which requires further refinement to ensure that it is robust and responsive to emerging threats.
Money Laundering Offence
Comprehensive Framework
Turkey has a comprehensive money laundering offence in place, which covers a wide range of activities related to financial crimes. This demonstrates a commitment to combating money laundering and preventing its misuse.
However, there are some limitations in the country’s legal framework, particularly with regards to the definition of money laundering and the scope of applicable penalties.
Targeted Financial Sanctions
Progress in Implementing Sanctions
Turkey has made progress in implementing targeted financial sanctions related to terrorism and terrorist financing, with significant efforts being made to enhance its capacity for identifying and freezing assets linked to terrorist organizations. This is a positive step towards strengthening its counter-terrorism financing framework.
However, there are still some concerns regarding the effectiveness of Turkey’s sanctions regime, which requires further strengthening to ensure that it is robust and responsive to emerging threats.
International Cooperation
Strong Commitment
Turkey has demonstrated a strong commitment to international cooperation in combating money laundering and counter-terrorism financing, with significant efforts being made to enhance its partnerships with FATF member countries. This is a positive step towards strengthening its anti-money laundering framework.
The country has also made progress in implementing international instruments related to anti-money laundering and counter-terrorism financing, including the United Nations Convention against Transnational Organized Crime.
Areas for Improvement
While Turkey has made significant strides in enhancing its cooperation with international partners, there are still some areas where the country requires further attention. These include:
- Enhancing its risk-based approach to identifying high-risk sectors and individuals
- Strengthening its sanctions regime related to terrorism and terrorist financing
- Improving its capacity for collecting and analyzing financial intelligence
- Enhancing its cooperation with international partners in combating money laundering and counter-terrorism financing
Conclusion
Overall, Turkey’s efforts to enhance its cooperation with international partners are a positive step towards strengthening its anti-money laundering and counter-terrorism financing framework. However, there are still some areas where the country requires further attention to ensure that it is fully compliant with FATF Recommendations.