Turkey’s Efforts to Strengthen Anti-Money Laundering and Counter-Terrorist Financing Regulations Face Scrutiny

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Turkey has been working diligently to strengthen its anti-money laundering and counter-terrorist financing (AML/CFT) regime in an effort to combat money laundering and terrorist financing. In October 2021, Turkey was added to the Financial Action Task Force’s (FATF) list of jurisdictions under increased monitoring, also known as the “Grey List”.

Progress Made

Since being placed on the Grey List, Turkey has made significant progress in improving its AML/CFT regime. This includes:

• Conducting more complex money laundering investigations and prosecutions aligned with risks
• Prioritizing terrorism financing investigations and prosecutions related to UN-designated groups

However, despite these efforts, the FATF noted that Turkey still needs to address one remaining strategic deficiency: confiscating assets related to terrorist financing consistent with its risk assessment.

Technical Assistance Workplan

In response to a request from Turkish authorities, the EU Global Facility on AML/CFT conducted a scoping mission in February 2022 to assess Turkey’s needs and demands. The facility subsequently designed a technical assistance workplan aimed at helping Turkey rectify its strategic deficiencies in its national anti-money laundering and counter-terrorist financing framework.

International Monitoring

Turkey’s efforts to strengthen its AML/CFT regime are closely monitored by international organizations, including:

• FATF: provides guidance and recommendations for countries to combat money laundering and terrorist financing
• MONEYVAL: a platform for countries to share information and best practices in combating money laundering and terrorist financing

By working with these international organizations, Turkey is able to benefit from their expertise and guidance as it continues to strengthen its AML/CFT regime.