Turkish Treasury and Finance Minister Mehmet Şimşek will travel to Singapore later this month to attend a critical Financial Action Task Force (FATF) meeting. The global financial crimes watchdog is poised to announce whether Türkiye will be removed from its “gray list” of countries deemed insufficient in combating money laundering and terrorist financing.
Over recent months, Turkish officials have consistently expressed optimism about the country’s prospects of being delisted. Vice President Cevdet Yılmaz has emphasized that Türkiye has fulfilled all necessary requirements and suggested that failure to upgrade its status would be politically motivated.
“From a technical aspect, I believe there are no obstacles left. I think Türkiye fully meets the technical criteria,” Yılmaz stated last month. “If we are not taken off the FATF gray list in June, it will be due to political reasons, not technical ones.”
The FATF, established by the G-7 to safeguard the global financial system, recently sent a team to Türkiye to evaluate its progress. This assessment follows Türkiye’s 2021 downgrade due to concerns about money laundering and terrorist financing.
Şimşek will lead a delegation to the FATF Plenary and Working Group Meetings, where a final decision is anticipated on June 28. In February, the FATF indicated that Türkiye had “substantially completed its action plan,” warranting an on-site assessment. Şimşek affirmed last week that the technical evaluations have been finalized positively.
“We are committed to combating money laundering and terrorist financing,” Şimşek emphasized. He noted that Türkiye now complies with all but one of the FATF’s 40 standards, including those related to cryptocurrency assets.
The Turkish government has undertaken several legislative measures to address FATF concerns. Last month, the ruling Justice and Development Party (AK Party) submitted a draft law to Parliament, aiming to bring crypto assets under the scope of the capital markets law. This move is part of broader efforts to align with international standards and bolster the country’s financial regulations.
An upgrade from the FATF could significantly enhance Türkiye’s economic prospects. Research suggests that delisting from the gray list would likely attract more foreign direct investment (FDI), a critical factor for the country’s economic growth.
As the decision date approaches, Türkiye stands at a pivotal moment in its efforts to improve its financial system’s integrity. The outcome of the FATF meeting will not only impact Türkiye’s international financial standing but also reflect on the broader geopolitical landscape.
Şimşek’s attendance at the Singapore meeting underscores the importance Türkiye places on this issue. The nation’s commitment to rigorous anti-money laundering practices and counter-terrorist financing measures remains a top priority. With comprehensive reforms and stringent enforcement now in place, Türkiye is hopeful that its efforts will be recognized, leading to a favorable decision from the FATF.