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FATF General Assembly in Singapore to review Türkiye’s grey list status

FATF General Assembly in Singapore to review Türkiye's grey list status Grey-listed countries are subject to increased scrutiny, potentially deterring foreign investors, June 24, 2024. (Photo obtained via IMF)
By Newsroom
Jun 24, 2024 1:35 AM

The Financial Action Task Force (FATF) General Assembly will be held in Singapore on June 26-28. FATF is the watchdog for global money laundering and countering terrorist financing. It establishes international standards aimed at preventing these illegal activities and the resulting harms to society.

Türkiye, grey-listed since 2021, is expected to be removed from the grey list following the upcoming assembly.

Countries on the grey list undergo heightened scrutiny, potentially deterring foreign investors. According to a 2021 IMF report, such countries typically experience significant declines in capital inflows.

The closed-door assembly will also assess systems in India and Kuwait, alongside discussions on Türkiye’s progress in combating money laundering and terrorism financing. Turkish authorities have engaged with FATF to address these concerns, culminating in an on-site visit whose findings will influence the decision on June 28.

Türkiye on the list since 2021

Türkiye was placed on the grey list in 2021 due to perceived shortcomings in financial crime prevention. Finance Minister Mehmet Simsek announced completion of technical preparations for delisting in February, highlighting potential positive impacts on the Turkish lira and local assets if delisted. “With the on-site audit to be carried out in June, the process of delisting from the grey list will be completed,” he said earlier.

Achieving consensus among FATF members on progress made is crucial for avoiding grey list categorization, a status currently shared by 20 other countries including Nigeria, South Africa, and the Philippines.

Last Updated:  Jun 29, 2024 12:14 AM
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