Turkey Exits FATF Grey List Following Crypto Legislation

• After years of concerted efforts, Türkiye has officially been removed from the Financial Action Task Force’s (FATF) grey list.
• Şimşek underscored the completion of nearly all action plan items, with cryptocurrency regulations being the critical final step.
• “Our country no longer has any outstanding requirements to remain on the grey list, barring any political considerations,” stated Şimşek.

Türkiye has been officially removed from the FATF’s grey list, signifying major strides in combating financial crime.

Türkiye Exits FATF Grey List After Launching Crypto Regulations

In a landmark decision, Türkiye has exited the Financial Action Task Force’s (FATF) grey list, following the implementation of comprehensive cryptocurrency regulations. Minister of Treasury and Finance, Mehmet Şimşek, attended the general assembly meeting in Singapore to discuss the country’s progress towards meeting FATF standards.

Efforts to Combat Financial Crime

Türkiye was initially placed on the FATF grey list in 2021 due to deficiencies in combating money laundering and terrorism financing. To address these issues, Türkiye actively collaborated with FATF, undertaking a series of regulatory and legislative measures. One of the most significant steps was the introduction of rules governing the cryptocurrency market, which was essential to meet FATF’s stringent 40-point criteria.

Implications for Türkiye’s Financial Sector

The country’s removal from the grey list is a testament to the diligent efforts undertaken by the Turkish government. Minister Şimşek highlighted that the country had adopted 39 out of 40 requirements set forth by FATF. The final hurdle was the enactment of proper cryptocurrency legislation. Following the approval of amendments to the Capital Markets Law, Türkiye has now aligned with global standards to combat financial crimes efficiently.

Impact on Other Grey Listed Countries

With Türkiye’s departure, countries such as Bulgaria, Burkina Faso, and Jamaica remain on the grey list. These nations are classified by FATF as having deficiencies in their frameworks for preventing financial crimes but are actively working towards compliance. Türkiye’s exit serves as a milestone and a model for other countries to aspire to.

Conclusion

Türkiye’s removal from the FATF grey list marks a significant achievement in its efforts to combat money laundering and terrorism financing. The finalization of cryptocurrency regulations played a crucial role in this success. With this development, Türkiye has not only improved its global financial standing but also set a notable example for other grey-listed countries striving for compliance and economic stability.