Turkey Turkey

New Documents

EU Adopts Ten Reports on Efforts of Applicant Nations to Improve AML/CTF, Anti-Corruption Measures

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.

November 8, 2023

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

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

News

Weekly Roundup: Russia Holds Sway in FATF, Wirecard Fugitive Tied to Espionage, and More

Weekly Roundup: Russia Holds Sway in FATF, Wirecard Fugitive Tied to Espionage, and More

April 5, 2024

Midweek Roundup: FinCEN Pitches Real Estate Rule, Treasury Updates Money Laundering Assessment, and More

Iran funneled funds through Britain, U.S. regulators target bank-fintech partnerships, and more, in the midweek roundup.

February 7, 2024

Midweek Roundup: Chevron Doctrine in Peril, Criminals Turn Towards Tether, and More

January 17, 2024

Weekly Roundup: New York Yanks BitLicense, Tornado Cash Still in Business, and More

January 12, 2024

Weekly Roundup: Biden Strengthens Russia Sanctions, Latvia’s Former Central Bank Chief Jailed, and More

December 22, 2023

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 : 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