Turkey Removed From FATF’s Grey List: A Boost for Investor Confidence and Economic Recovery
Background on FATF and the Grey List
The Financial Action Task Force (FATF) is an international inter-governmental organisation that develops and promotes policies to protect the global financial system against money laundering, terrorist financing, and proliferation financing. The FATF maintains a list of countries with deficiencies in anti-money laundering (AML), combating the financing of terrorism (CFT), and combating proliferation financing (CPF).
Countries on the FATF grey list are those that have identified gaps in their AML/CFT/CPF laws but are actively working to address these weaknesses. Failure to meet the agreed goals can result in a country’s return to the FATF black list, which contains countries with serious deficiencies in AML/CFT/CPF measures.
Turkey Removed from the Grey List
In a significant development, Turkey has been removed from the FATF grey list following satisfactory steps taken by Turkish authorities to reduce money laundering and improve its anti-terrorism financing measures. This move is expected to boost investor confidence and support the country’s economic recovery.
Economic Impact of Removal from the Grey List
Turkey’s removal from the grey list comes at a critical time for the country’s economy, which has been struggling due to soaring inflation and unconventional monetary policies backed by President Recep Tayyip Erdogan. The decision is expected to lead to an increase in output, exports, and consumption as foreign businesses, investors, and global banks return to Turkey.
Government Response
Turkey’s Interior Minister Ali Yerlikaya welcomed the decision on social media platform X, stating that the government would continue its fight against organised crime organisations, traffickers of poison (drugs), immigrant smuggling rings, money-laundering criminal groups, and those financing terrorism.
FATF Grey List Members
The current members of the FATF grey list include:
- Bulgaria
- Croatia
- Kenya
- Namibia
- Philippines
Countries on the grey list are actively working to address their deficiencies in AML/CFT/CPF laws. Failure to meet the agreed goals can result in a country’s return to the FATF black list.
Conclusion
Turkey’s removal from the FATF grey list is seen as a positive step towards bolstering investor confidence and supporting the country’s economic recovery. It is expected that more foreign businesses, investors, and global banks will return to Turkey, leading to an increase in output, exports, and consumption.