Newsletters
Twenty-one suspects were detained in a major operation targeting a criminal network accused of bypassing import quotas and customs regulations in the gold and precious metals trade, Turkish authorities announced on Tuesday.
According to the Istanbul Chief Public Prosecutor’s Office, the group is alleged to have caused approximately ₺100 billion ($2.3 billion) in public financial damage through fraudulent transactions between January 2023 and December 2024.
The suspects reportedly established shell companies through third parties to exploit Türkiye’s "Inward Processing Regime," which allows the duty-free import of raw materials such as gold and silver for processing and re-export.
While the scheme is meant to boost exports, prosecutors say the imported precious metals were not re-exported as required.
The investigation found that large volumes of gold and silver were brought into Türkiye under the framework, but were either misused or remained within the country in violation of the program's terms.
Authorities claim the companies used deceptive documents and falsely declared materials, such as substituting brass or imitation gold in place of real gold sheets, to facilitate export claims.
These tactics allowed the network to profit illicitly while avoiding restrictions placed on gold imports in recent years, the statement said.
In 2023, Türkiye introduced import quotas on unprocessed gold to mitigate its adverse impact on the current account balance.
However, imports under the Inward Processing Regime were initially exempt from these quotas to support jewelry exporters, allowing them to purchase gold in proportion to verified export volumes through designated banks.
The Istanbul Chief Public Prosecutor’s Office stated that two additional suspects remain at large and are the subject of ongoing arrest and search operations.
The investigation signals intensified regulatory enforcement on abuses of the regime and broader attempts to manage pressures on Türkiye’s foreign trade balance.
The authorities have not yet released the names of the companies or individuals involved.
1 min read
1 min read
