A delegation from the global financial misconduct watchdog is due this month to evaluate Türkiye after removing it from its "gray list" last year for progress made in fighting money laundering and the funding of terrorist activity, a report said on Monday.
The Financial Action Task Force's (FATF) visit, which could last up to three weeks, includes meetings Nov. 24-28 with the Financial Crimes Investigation Board (MASAK), banks, payment service firms and other entities in the big emerging market economy, five sources familiar with the matter told Reuters.
Türkiye was put on the list in October 2021 for what was said to be its failure to supervise banking, real estate and other sectors vulnerable to money laundering. It was removed in late June last year.
A representative of FATF said it expected an on-site period in November but could not comment on details or timing. MASAK, which works directly with the international watchdog, did not respond to requests for comment.
Ahead of the visit, authorities launched several probes into alleged money laundering and suspended operations or seized assets of dozens of companies.
According to central bank decisions published in the Official Gazette, at least 10 payment firms had their licenses temporarily suspended or revoked, including leading brand Papara, some due to alleged illicit transactions. The bank lists 61 licensed electronic money institutions.
In a 2023 report, FATF rated Türkiye "partially compliant" in virtual asset regulation. That year marked a stark turnaround in Turkish economic policy toward more conventional policymaking, after which foreign investors began trickling back into local assets.
One of the sources, a banker, said the industry submitted some reports to authorities about ownership structures and licensing practices amid the rapid growth of payment service providers in the last five years.
Both the sector and banks have complained about the pace of expansion, the number of licenses issued and whether networks of relationships were adequately monitored, the source said.
