Financial Crime World

Turkey Removed from International Watchdog’s Gray List of Countries Failing to Combat Money Laundering and Terrorism Financing

In a major boost for foreign investments in Turkey, the country has been removed from an international watchdog’s gray list of countries that have not fully implemented measures to fight money laundering and terrorism financing.

Background

Turkey was placed on the Financial Action Task Force (FATF) gray list in 2021, which can scare away investors and creditors, hurting exports, output, and consumption. It also makes global banks wary of doing business with a country. However, following a visit by a FATF team to Turkey in May, the organization confirmed that the country had taken substantial progress in improving its anti-money laundering regime.

Turkey’s Progress

The Turkish government has made significant strides in addressing all items on its action plan, according to FATF President T. Raja Kumar. Complex investigations into and prosecutions of money laundering and terrorist financing are examples of the country’s efforts.

  • Investigations into organized crime organizations
  • Prosecutions of drug traffickers, immigrant smuggling rings, and money-laundering criminal groups
  • Efforts to combat those who finance terrorism and traitors

Government Reaction

Turkish Finance Minister Mehmet Simsek welcomed the decision on social media platform X, stating “We succeeded.” Vice-President Cevdet Yilmaz expressed optimism about the development’s positive consequences for the financial sector and economy, boosting international investors’ confidence in Turkey’s financial system.

Interior Minister Ali Yerlikaya emphasized that Turkey will continue to fight against organized crime organizations, drug traffickers, immigrant smuggling rings, money-laundering criminal groups, and those who finance terrorism and traitors.

Other Developments

Jamaica was also removed from the gray list, while Monaco and Venezuela were added. The United Arab Emirates was taken off the list earlier this year.

Impact on Economy

The removal from the gray list is expected to have a positive impact on Turkey’s economy, which has been trying to rebound from a deep economic downturn. This development will likely boost foreign investments and improve the country’s financial reputation globally.