Turkey

New Documents

OECD Calls on Turkey to Uphold Anti-Corruption Commitments

The Organisation for Economic Cooperation and Development issued a statement concerning Turkey’s lack of efforts concerning its anti-corruption commitment.

November 10, 2022

EU Commission Evaluates Regulatory Reforms in Seven Applicant Countries

The European Commission adopted its 2022 Enlargement Package, which provides detailed country assessments into nation states that aspire to join the European Union.

October 12, 2022

FATF Follow-Up Report on Turkey Highlights Progress in Three Areas

May 10, 2022

FATF Re-Rates Turkish AML/CTF Compliance on Five Recommendations

November 30, 2021

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

October 20, 2021

News

Midweek Roundup: Russian National Steps Down from Moneyval, US Domestic Terrorist Finances Moving Undetected, and More

Wirecard chief executive denies culpability, Credit Suisse breached sanctions against Russia, and more, in the midweek roundup.

March 22, 2023

Midweek Roundup: EU-Iran Payment Platform Lays Dormant, Michigan Bank Fined, and More

U.S. military studies cryptocurrency, Turkish banks shun Russia’s Mir, and more, in the midweek roundup.

September 28, 2022

Weekly Roundup: Turkey Seeks Russian Payment Workaround, US Treasury Wants ‘Chief Sanctions Economist,’ and More

September 23, 2022

Midweek Roundup: New York Eyes Gun Merchant Code, France Taps AI, Satellite Imagery to Find Untaxed Swimming Pools, and More

August 31, 2022

Midweek Roundup: Turkish Banks Join Russian Payment System, OFAC Targets Cryptocurrency Mixer, and More

August 10, 2022

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 : 12 High : 0
Largely Compliant : 22 Substantial : 2
Partially Compliant : 4 Moderate : 7
Non-Compliant : 2 Low : 2

Turkey's technical compliance was re-rated in a May 10, 2022 follow-up report. Turkey remains on FATF's gray list as of March 4, 2022.

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