FATF flags Turkey's progress on financial crime, urges stronger asset recovery
FATF finds Turkey has strengthened its anti-money-laundering regime since 2019 but must do more on tracing cross-border proceeds and recovering illicit assets.
Turkey has made meaningful strides in combating money laundering and terrorist financing, yet gaps persist in tracing criminal proceeds across borders and recovering illicit assets, the Financial Action Task Force said in its latest assessment.
The global financial crime watchdog found that Turkey has improved coordination among its agencies, sharpened its financial intelligence work and deepened international cooperation since its last comprehensive review in 2019. Money-laundering investigations, prosecutions and convictions have all risen substantially over the same period.
Still, the FATF pointed to structural vulnerabilities that keep Turkey exposed to financial crime. Its position as a regional hub for finance, trade and logistics, combined with heavy reliance on cash and a sizable informal economy, creates openings for offences such as fraud, illegal betting and gambling, drug trafficking and smuggling.
On the FATF's 40 technical recommendations, Turkey avoided any "non-compliant" rating, though it was judged "partially compliant" on two. The watchdog said weaknesses remain in handling complex, high-risk cases and in identifying and recovering criminal assets located abroad.
The assessment underscores the dual picture facing Turkish authorities: measurable institutional progress alongside persistent challenges that stem partly from the country's economic geography and the nature of its financial flows.