Turkey Country Summary

FATF Status

Turkey is no longer on the FATF List of Countries that have been identified as having strategic AML deficiencies

Compliance with FATF Recommendations

The last follow-up Mutual Evaluation Report relating to the implementation of anti-money laundering and counter-terrorist financing standards in Turkey was undertaken in 2023. According to that Evaluation, Turkey was deemed Compliant for 14 and Largely Compliant for 25 of the FATF 40 Recommendations. It remains Highly Effective for 0 and Substantially Effective for 2 with regard to the 11 areas of Effectiveness of its AML/CFT Regime.

Crime and corruption in Turkey are significant issues, with pervasive human trafficking, arms trafficking, and drug-related crimes being prevalent across the country. The government's efforts to combat these problems are hampered by inadequate judicial independence and widespread corruption, which often undermines law enforcement and regulatory capacities, leading to a resilience that is challenged by the intertwining of criminal networks with state actors.

Turkey's economy has shown resilience and growth, particularly between 2002 and 2007, and it managed to navigate the global financial crisis of 2008-2009 effectively. However, recent years have seen a stagnation and regression in economic and democratic reforms, with significant challenges including high inflation rates, currency depreciation, and vulnerabilities exacerbated by natural disasters and geopolitical tensions. Despite these issues, Turkey maintains an open foreign direct investment (FDI) regime that treats foreign and domestic investors equally, although opaque regulations and bureaucratic hurdles pose risks, and the government is urged to implement reforms to stabilize the economy and enhance the investment climate.