The Financial Action Task Force (FATF) within the Organization for Economic Cooperation and Development (OECD) made a striking decision about Turkey in the past few minutes. FARF announced that Turkey has been placed on the gray list, requiring ‘stricter monitoring’, on the grounds that it lacks in preventing money laundering and terrorist financing.
The decision to add Turkey to the gray list, one of the new decisions announced at the press conference, was a decision that has been expected since yesterday. FATF emphasized that Turkey had some shortcomings in these areas in the most recent evaluation made in 2019. Today, Turkey is on the gray list due to these shortcomings. With this decision, Turkey will be subject to monitoring by the International Cooperation Review Group of the institution.
What else does Turkey’s gray list mean?
Being on the FATF’s gray list has a ‘major and significantly negative impact’ on a country’s capital inflows, according to a study conducted by the IMF in May. In other words, Turkey, which has difficulties in attracting foreign investors, may have even more difficulties with this decision.
Which countries are on the gray list?
Turkey, along with Jordan and Mali, are on the gray list, including countries such as Albania, Bahamas, Barbados, Cambodia, Ghana, Iceland, Jamaica, Mongolia, Myanmar, Pakistan, Nicaragua, Panama, Syria, Uganda, Yemen and Zimbabwe.
So what is FATF?
FATF, which Turkey became a member on September 24, 1991, periodically audits and evaluates member countries in terms of their progress in preventing money laundering and terrorist financing.
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