Untold Truth about Anti-Money Laundering in Turkey
Moreover, Turkey is a signatory to several bilateral anti-money laundering treaties established with countries such as Germany, Greece, Afghanistan, Syria, Romania, Georgia, Albania and Italy. Turkey also cooperates with other countries in combating money laundering effectively.
The FATF reports conducted in 1994, 1998 and 2006 evidence that Turkey has continually endeavored to improve its anti-money laundering provisions and followed the recommendations made by the FATF. In February 2009, FATF’s progression report indicated that as a result of the enhanced AML regime, Turkey has been taken off the list of countries under the ‘enhanced follow-up’ procedure.
Against this background, it may be expected that Turkey has an effective anti-money laundering regime. However, the reality can be further than the truth. The lack of both rule of law and successful convictions coupled with political interference in the judiciary paint a different picture about money laundering regime in Turkey. Given the record slide in the Perceived Corruption Index from 53rd in 2013 to 64th place in 2014, there are serious questions that must be asked about Turkey’s AML commitments. This paper provides a critical analysis of the AML framework in Turkey and identifies inherent and current problems therein.