The Financial Action Task Force (FATF), the global body overseeing money laundering and terrorism financing prevention, removed Turkey from its "grey list" on June 28th, 2024. This move comes after Turkish authorities demonstrably improved their anti-money laundering (AML) and counter-terrorism financing (CFT) regimes, according to a FATF statement.
Turkey's inclusion on the grey list, which entails increased monitoring, occurred in 2021 due to concerns regarding its AML/CFT framework. The FATF initiated discussions with Turkish officials to address these shortcomings, resulting in a comprehensive action plan.
The successful implementation of this plan convinced the FATF of Turkey's commitment to tackling financial crime. The watchdog acknowledged Turkey's "significant progress" in bolstering its AML/CFT regime, emphasizing that the country is no longer subject to its enhanced monitoring process.
This development is expected to provide a significant boost to Turkey's economic prospects, particularly in attracting foreign investment. Analysts believe that being on the grey list had a chilling effect on investor confidence, especially considering the country's ongoing economic challenges like high inflation and currency depreciation.
Experts anticipate that Turkey's improved AML/CFT standing will make it a more attractive destination for foreign capital. Increased foreign investment could bolster the Turkish economy by providing much-needed liquidity and fostering business growth.
The FATF's decision also carries symbolic weight, signifying international recognition of Turkey's progress in combating financial crime. This positive development could strengthen Turkey's global standing and facilitate further integration with the international financial system.
While Turkey's removal from the grey list represents a significant milestone, the FATF will continue to monitor the country's AML/CFT efforts. Continued adherence to international standards and robust implementation of the action plan will be crucial for Turkey to maintain its improved standing.