Türkiye stands on the brink of exiting the Financial Action Task Force (FATF) “gray list,” as Finance Minister Mehmet Şimşek declared the nation has entered the final phase of this crucial process.
Initially downgraded to the “gray list” by the global financial crimes watchdog in 2021, Türkiye has undertaken significant strides towards compliance. Minister Şimşek underscored these achievements, highlighting the country’s substantial fulfillment of FATF’s stipulated requirements, save for one.
Key among these achievements was the meticulous attention to technical compliance concerning cryptocurrency assets. Türkiye’s recent announcement of advancing to the concluding stage in the technical deliberations on regulatory frameworks for crypto assets further solidified its progress.
Minister Şimşek’s announcement followed the FATF’s acknowledgment that Türkiye has made substantial strides in fulfilling the necessary steps for removal from the gray list. The FATF underscored Türkiye’s high-level political commitment, particularly evident since October 2021, to fortify its Anti-Money Laundering (AML) and Counter Financing Terrorism (CFT) mechanisms.
The FATF’s statement highlighted Türkiye’s multifaceted reforms, encompassing enhanced AML/CFT supervision, robust enforcement of sanctions for breaches, bolstered resources for the Financial Intelligence Unit (FIU), and intensified efforts in money laundering investigations and prosecutions, aligning with identified risks.
Moreover, Türkiye has prioritized investigations and actions against terrorism financing, demonstrated a proactive stance in implementing targeted financial sanctions, and fostered collaboration with non-profit organizations (NPOs), ensuring their supervision remains risk-based and supportive of legitimate activities.
Minister Şimşek hailed Türkiye’s completion of the action plan items aimed at fortifying AML and CFT systems, attributing this milestone to the concerted efforts of various governmental bodies, notably the Ministries of Justice, Interior, and Foreign Affairs, under the auspices of the Financial Crimes Investigation Board (MASAK).
Looking ahead, the anticipated evaluation report by the FATF team following their visit to Türkiye will be pivotal, with discussions slated for the general assembly meeting in June. Minister Şimşek expressed confidence that Türkiye’s concerted endeavors will culminate in the removal of the gray list designation, marking a significant stride towards bolstering the nation’s financial integrity.
As Türkiye navigates the final stretch of its journey towards regulatory compliance, the collective efforts underscore the nation’s steadfast commitment to combating financial crimes and fostering a robust and transparent financial landscape.
