Financial Crime News is today publishing a Country Financial Crime Dashboard for Turkey.
The threats generating significant proceeds of crime and posing a “High” ML threat are illegal drug trafficking, migrant smuggling, human trafficking and fuel smuggling.“Medium” ML threat levels are for aggravated fraud; smuggling of tobacco, tobacco products and alcohol; illegal online betting and corruption.Turkey also faces severe threats from terrorism and has suffered from a significant number of terrorist attacks.
The sectors posing the highest ML/TF risks are related to activities involving Banking, money and value transfer services, including illegal money exchangers, Payment & E Money Institutions, Foreign Exchange Offices, Cryptocurrency Intermediaries, Real Estate Agents, Jewellers & Dealers in Precious Metals and Stones. Turkish increase in exports of critical goods to Russia raises risks that Turkish firms are targeted in connection with Western Sanctions circumvention. Turkey has also been highlighted by the USA as playing a prominent role in past fundraising streams for HAMAS.
After the FATF 2019 Report, 3 further follow up reports have reported improved levels of technical compliance with just one Recommendation (R15 – New Technologies) at Partially Compliant (crypto asset regulation) and none at None Compliant, but Turkey remains on the FATF Grey List (since October 2021). According to FATF, in October 2023, “Turkey should continue to work on implementing its action plan to address its one remaining strategic deficiency, specifically by confiscating assets related to terrorist financing consistent with its terrorist financing risk”.
Based on the FCN Country Risk Scoring Model, it scores, 83/100 High Threat 79/100 for Low to Moderate Response and a High overall Country Risk Level at 80/100, the highest of all FATF Member Countries, ahead of Russia, China, Mexico & Indonesia.
For a copy of the Dashboard see HERE: FCN Turkey Pbd
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