Turkey pursues new crypto regulations to exit FATF's grey list
Turkey, with just 1 FATF standard left to fulfil, aims to draft new crypto regulations to exit the FATF grey list that it was downgraded to in 2021
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Turkey is reportedly working on new crypto regulations to persuade the Financial Action Task Force (FATF) to remove it from the “grey list” of countries that have taken insufficient action to combat money laundering and terrorist financing.
The FATF is an international organisation comprising advanced economies dedicated to safeguarding the global financial system. It operates based on international standards known as the FATF recommendations, which provide a comprehensive framework of measures countries must adopt to combat money laundering and terrorism financing.
Inclusion in the FATF grey list affects a country’s relationship with foreign banks and investors who follow FATF rankings. It puts them under increased scrutiny from the FATF and its member states. However, the FATF also offers technical support to help countries on the grey list enhance their Anti-money laundering (AML) and counter-terrorist financing (CFT) systems.
In 2019, the FATF warned Turkey about “serious shortcomings” in its procedures for freezing assets related to terrorism and the proliferation of mass destruction weapons. In 2021, the FATF downgraded Turkey to the grey list, placing it alongside Pakistan, Morocco, Albania, and Yemen.
During a discussion with a parliamentary commission on Oct 31, 2023, Turkish Finance Minister Mehmet Simsek revealed that according to a FATF report, Turkey has adhered to all but one of the 40 standards set by the organisation.
