FATF Criticizes Turkish Crypto Companies Over Anti-Money Laundering Shortcomings

The Financial Action Task Force (FATF) has released its assessment of Turkey's efforts to combat money laundering and terrorist financing in the cryptocurrency industry. According to the report, Turkish crypto companies have a good understanding of their anti-money laundering obligations but struggle with implementing them effectively.

Specifically, the FATF noted that there are shortcomings in identifying and monitoring politically exposed persons (PEPs) among customers and insufficient reporting of suspicious transactions. This is despite the fact that financial institutions and virtual asset service providers generally have a comprehensive knowledge of their anti-money laundering and terrorist financing obligations.

The report also highlighted that Turkey's regulatory framework for VASPs is still in its early stages of implementation, which may contribute to the identified shortcomings. However, the FATF assessment did not indicate any strategic shortcomings or grey list risks for Turkey.

In a statement, the Ministry of Treasury and Finance emphasized that Turkey has made significant progress in combating money laundering and terrorist financing through legislative work, institutional arrangements, and practices.