ERBIL, Kurdistan Region - Global anti-money laundering watchdog Financial Action Task Force (FATF) removed Turkey from the list of countries that require special scrutiny over money laundering concerns on Friday.
FATF downgraded Turkey to its “grey list” in 2021, for failing to supervise its banking and real estate and other sectors to money-laundering and financing organizations such as the Islamic State (ISIS).
Following rounds of meetings with Turkish officials, the watchdog delisted Turkey.
FATF said in a statement that Turkey made “significant progress” in addressing its anti-money laundering and combating the financing of terrorism deficiencies.
“They have completed their Action Plans to resolve the identified strategic deficiencies within agreed timeframes and will no longer be subject to the FATF’s increased monitoring process,” read the statement from the Paris-based organization.
Before the Friday meeting of FATF, Turkish Finance Minister Mehmet Simsek wrote “we succeeded” on X, following it with a Turkish flag emoji.
Turkish officials welcomed the decision.
"With this development, international investors' confidence in our country's financial system has become even stronger," Turkish Vice President Cevdet Yilmaz said on X, adding that the decision is an “extremely positive” outcome for the country’s finance and real sector.
When the FATF adds a country to the grey list, “it means the country has committed to resolve, swiftly, the identified strategic deficiencies within agreed timeframes and is subject to increased monitoring,” according to the organization.
The removal from the grey list could help to improve Turkey’s crippled economy. Following the announcement of the decision, the value of US dollars against the Turkish lira decreased from 32.94 to 32.87.
There are over 20 countries in FATF’s “grey list” which are considered risky. The organization also has a “black list” which is for countries considered “high risk” jurisdictions.
The lira has been in freefall since a military coup in 2016, and the government of President Recep Tayyip Erdogan took unprecedented unilateral measures including successive state of emergency declarations which greatly isolated the country.
