Turkey

New Documents

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

The Council of Europe Parliamentary Assembly adopted a report and resolution on the vulnerable state of democratic institutions in Turkey, and urged the Turkish Government to adhere to international standards on human rights and on effective anti-corruption measures.

April 27, 2021

GRECO Raises Additional Concerns with Lacking Anti-Corruption Efforts in Turkey

The Council of Europe’s Group of States against Corruption published a second addendum to its Second Compliance Report on Turkey, which evaluated the country’s anti-corruption regime.

March 23, 2021

GRECO Second Interim Compliance Report Highlights Gaps in Turkey’s Anti-Corruption Regime

March 19, 2021

Turkish Ministry Condemns EU Designation of Turkish Company

October 8, 2020

Banks Association of Turkey Discusses Recent AML Reforms

April 15, 2020

News

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

Norway’s DNB anticipates $48 million penalty, Swedbank tagged with $5 million fine, and more, in the midweek roundup.

May 5, 2021

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

Bosnian authorities accuse former Raiffeisen Bank director of money laundering, China expands AML requirements to non-financial firms, and more, in the weekly roundup.

April 16, 2021

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

August 12, 2020

Midweek Roundup: Swiss Investigate Julius Baer for AML Failures, US Drops Pilatus Bank Case, and More

June 10, 2020

Midweek Roundup: FinCEN Issues COVID-19 Loan Advisory, Small Banks Seek Beneficial Ownership Relief amid Pandemic, and More

April 15, 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