Turkey set to be removed from FATF grey list

Turkey is reportedly close to being removed from the grey list of the Financial Action Task Force (FATF) as a result of its efforts to improve its anti-money laundering (AML) and counter-terrorist financing (CTF) regime.

The latest report from the FATF, the global watchdog for money laundering and terrorist financing, stated that the country had been re-rated on six recommendations.

The FATF also states that the re-rating has resulted from the three follow-up reports since its 2019 assessment which highlighted the progress made on strengthening it’s AML and CTF processes.

Consequently, Turkey only faces one more recommendation rated as partially compliant.

Being on the FATF’s grey list can have ramifications for countries in terms of attracting capital from, international investment firms or asset managers. It can also lead to ratings downgrades for corporates or investment vehicles in the region.

The UAE remains on the FATF’s grey list since being placed there in March 2022, although the FTAF’s recent report did note the country had taken “significant steps to address its AML and CTF shortcomings”.

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