Financial Crime World

Turkey Wins Praise from International Watchdog for Efforts Against Financial Crime

Major Victory for Turkey’s Economic Turnaround Efforts

The Financial Action Task Force (FATF) has removed Turkey from its “gray list” of nations that require special monitoring to combat money laundering and terrorist financing. This decision is a significant boost to Turkey’s reputation internationally and is expected to have positive consequences for foreign investment and relationships with European and US institutions.

FATF Praises Turkey’s Progress

The FATF, an international watchdog organization dedicated to combating financial crime, has praised Turkey’s progress in strengthening its anti-money laundering and combating the financing of terrorism (AML/CFT) regime. The country had previously been listed on the gray list due to concerns over:

  • Unregistered money transfer services
  • Insufficient resources for terrorist financing investigations
  • Alleged involvement in sanctions evasion
  • Lack of oversight in high-risk sectors such as banking and real estate

Reaction from Turkish Officials

Turkey’s Finance Minister, Mehmet Simsek, welcomed the news on social media, saying “We did it” alongside a Turkish flag emoji. Vice President Cevdet Yilmaz added that the decision would have extremely positive consequences for Turkey’s financial sector and economy.

Industry Experts Agree

Industry experts agree that the removal from the gray list will likely boost international investors’ confidence in Turkey’s financial system. Mohamed Daoud, industry practice lead at Moody’s ratings agency, said:

“Turkey’s removal from the Financial Action Task Force (FATF) Grey List recognizes the significant progress made by the Turkish government and various economic sectors in strengthening their fight against money laundering and terrorist financing.”

FATF Recommendations

The FATF has asked Turkey to continue working to sustain its improvements in its AML/CFT system, including:

  • Ensuring risk-based oversight of nonprofit organizations that could be used for terrorist financing
  • Continuing to work with the FATF to maintain its standards

Welcome Relief for Economic Turnaround Efforts

This decision comes as a welcome relief for Turkey’s economic turnaround efforts, which have been hindered by high inflation, a depreciating local currency, and inconsistent foreign investment levels.