Turkey

New Documents

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

The Financial Action Task Force published a follow-up report concerning the anti-money laundering and counterterrorist financing framework of Turkey, highlighting that the country’s progress resulted in three technical compliance re-ratings.

May 10, 2022

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

The Financial Action Task Force published a first follow-up report concerning Turkey’s progress to strengthen its anti-money laundering and counterterrorist financing regime since the December 2019 mutual evaluation report on the country.

November 30, 2021

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

October 20, 2021

Turkey, Other Countries Recommit to Fighting TF

July 15, 2021

Venice Commission Details Issues with Turkish Nonproliferation of Weapons Law

July 7, 2021

News

Midweek Roundup: BitMex Founder Faces Prison, FATF Praises France, and More

Russian nationals gobble up Turkish real estate, U.S. tops list of global tax havens, and more, in the midweek roundup.

May 18, 2022

Weekly Roundup: Barclays Flagged Suspicious UK Campaign Contribution, Mexican Court Favors AML Over Privacy, and More

Erdogan freezes assets of political opponents, U.K. lawmakers demand stronger AML reforms, and more, in the weekly roundup.

May 13, 2022

Midweek Roundup: Former Swedbank CEO Faces Criminal Charges, NatWest’s Problems Grow, and More

January 5, 2022

Weekly Roundup: Turkey Fines Binance, Cryptocurrency Compliance Chief Discusses Travel Rule, and More

December 30, 2021

Weekly Roundup: White House Warns Firms Over Cambodian Ties, Massive Fraud Against Britain’s COVID-19 Program Suspected, and More

November 12, 2021

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