Turkey Removed from FATF’s Grey List: Boost to Economic Turnaround Plan
The Financial Action Task Force (FATF) has removed Turkey from its grey list of enhanced monitored countries. This move comes after a significant improvement in Turkey’s anti-money laundering (AML) and combating the financing of terrorism regime.
Background
Turkey was downgraded to the “grey list” in 2021 due to concerns over AML and TF. The latest decision marks a boost to the country’s economic turnaround plan, with Turkish Vice President Cevdet Yilmaz stating that international investors’ confidence in the financial system has become stronger.
Positive Consequences
The removal of Turkey from the grey list is expected to have positive consequences for both its financial sector and real sector. This decision may attract more foreign investment, improve investor confidence, and strengthen the Turkish economy.
FATF’s Decision
The Financial Action Task Force (FATF) team held meetings with Turkish authorities to assess progress in addressing concerns about money laundering and terrorist financing. After evaluating Turkey’s actions, FATF concluded that the country had made significant progress in improving its AML regime.
Market Reaction
Although the lira was slightly weaker against the dollar following the announcement, there was little immediate market reaction. This suggests that investors are cautiously optimistic about the removal of Turkey from the grey list.
Comparison with Other Countries
Turkey joins a number of other countries on the grey list, including over two dozen nations considered risky by FATF. In February, the UAE was removed from the list after substantially completing its action plan.
Conclusion
The removal of Turkey from the grey list is a positive development for the country’s economic outlook and is likely to be welcomed by international investors. It follows a period of increased focus on AML and TF regulation in Turkey, with the government implementing measures to improve its regime and address concerns raised by FATF.