A Paris based watchdog – FATF (Financial Action Task Force) has warned Turkey over serious shortcomings in tackling money laundering and terrorist financing. Turkey is now subjected to special monitoring by FATF.
The country has a low rate of conviction for terrorism financing, FATF reported. The data obtained by the FATF from various authorities shows that more than 6,000 people were prosecuted in 2017 but only 115 convicted.
FATF believes that the geographical location of Turkey fuels smuggling and other serious issues such as money laundering and human trafficking in the country. Turkey is also facing significant terrorist financing risks from both national and international threats, FATF told.
Turkey was listed in the grey-list earlier as well, but it was removed in 2014 after a four-year monitoring period. If Turkey fails to address the issue then it will be re-added to the list. Currently, Pakistan, Mongolia and Yemen are the members of FATF’s grey-list.
Source – International Investment