Turkey

New Documents

European Commission Finds Little Progress in Turkish Efforts to Reform Anti-Corruption, AML Measures

The European Commission published a report on Turkey’s progress in implementing necessary regulatory reforms as part of the country’s accession negotiations with the European Union.

October 20, 2021

Turkey, Other Countries Recommit to Fighting TF

The governments of Turkey, Afghanistan, and Iran issued a joint statement summarizing the outcome of the countries’ June 20, 2021 Trilateral Meeting of the Ministers of Foreign Affairs.   

July 15, 2021

Venice Commission Details Issues with Turkish Nonproliferation of Weapons Law

July 7, 2021

OECD Working Group Highlights Turkey’s Gaps in Foreign Bribery Enforcement

June 29, 2021

COE Parliamentary Assembly Urges Turkey to Safeguard Democratic Institutions, Combat Corruption

April 27, 2021

News

Midweek Roundup: EU Unveils AML Plan, New York Nears Settlement with Online Trader, and More

U.S. military inadvertently violated sanctions, hundreds of German financial institutions lack AML supervision, and more, in the midweek roundup.

July 21, 2021

Midweek Roundup: Vatican Chargers Former FIU Chief, Global Regulators Target Binance, and More

Barclays stops transfers to Binance, FinCEN appoints first head of cryptocurrency supervision, and more, in the midweek roundup.

July 7, 2021

Midweek Roundup: Yellen Taps Interim OCC Director, Monitor Approves MoneyGram’s AML Program, and More

May 5, 2021

Weekly Roundup: Fintech Loses Bank Accounts, Maltese Lender Denies Involvement in Former Manager’s Alleged Laundering, and More

April 16, 2021

Weekly Roundup: Citigroup Blocks Hong Kong Officials, Turkey’s Halkbank Challenges US Jurisdictional Claim, and More

August 12, 2020

Enforcement Actions

0 Items Found

Key Documents

Turkey Updates Law Outlining Laundering Offense

June 26, 2009

Turkey Amends Law on AML Principles, Procedures

June 18, 2014

Turkey Requires Financial Institutions to Appoint AML/CTF Officer, Establish Compliance Program

September 26, 2008

Turkey Publishes Regulations on Prevention of Laundering Illicit Proceeds, Terrorist Financing

January 2, 2010

Turkey Provides Guidance on Simplified Due Diligence

January 2, 2010

Turkey Outlines Proper STR Filing Procedures

October 18, 2008

Important Facts

  • The U.S. Department of State classifies Turkey as a major money laundering jurisdiction. The country’s rapid growth, combined with its commercial relationships and geographical proximity to unstable, conflict-ridden areas like Iraq, Syria and Crimea makes Turkey vulnerable to money laundering and terrorist financing risks. Conflicts on Turkey's southern border have also increased illicit finance risks. The country is a hub for licensed and unlicensed money remitters, as well as smugglers that use routes in the country to smuggle weapons into Syria, smuggle migrants out of Syria, and to further human trafficking. Other crimes related to money laundering occur through alcohol, fuel, and tobacco smuggling. Criminals use front companies and shell companies to conceal illicit proceeds as legitimate income. Moreover, individuals and businesses operate as unlicensed money remitters by using their bank accounts to move illicit proceeds through the financial system. Turkey's nonprofit sector is additionally vulnerable to financial crimes as the sector is not audited for money laundering activity. Although the country has adopted know-your-customer and suspicious transaction reporting regulations for banks, bank or credit issuers, authorized exchange houses, and other financial services, politically exposed persons are not subject to enhanced due diligence.  According to Turkish authorities, illicit proceeds are used to acquire real estate and precious metals and stones.  U.S. officials have designated Turkey as a destination for illicit proceed from cyber-fraud perpetuated in the U.S. In 2019, the U.S. indicted Turkey's state-owned bank on charges of fraud, money laundering, and participation in a multibillion-dollar scheme to evade U.S. sanctions on Iran.
Source: 2020 International Narcotics Control Strategy Report (INCSR)  

Rankings

FATF i | 2013 Methodology

Technical Effectiveness
Compliant : 11 High : 0
Largely Compliant : 17 Substantial : 2
Partially Compliant : 10 Moderate : 7
Non-Compliant : 2 Low : 2

BASEL i

Rank : 41/141
Score : 5.76/10

TRANSPARENCY INTERNATIONAL i

Rank : 91/180
Score : 39/100

Tax Justice Network i

Rank : 55/133
Score : 60/100