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The European Commission adopted ten reports as part of its 2023 Enlargement Package, which provides detailed assessments on applicant countries that want to join the European Union.

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

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Enforcement Actions

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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 : 14 High : 0
Largely Compliant : 25 Substantial : 2
Partially Compliant : 1 Moderate : 7
Non-Compliant : 0 Low : 2

Turkey's technical compliance was re-rated in a July 20, 2023 follow-up report. Turkey remains on FATF's gray list as of June 23, 2023.

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