Türkiye’s FATF grey list exit to increase international investments, loans
Türkiye has largely met the criteria for removal from the gray list, Istanbul, Feb. 23, 2024 (AA Photo)
Türkiye’s removal from Financial Action Task Force’s grey list is set to dramatically increase international investment in the country from funds that were previously unable to divert their attentions to Türkiye due to the FATF listing.
The announcement of Türkiye’s exit from the grey list is also set to facilitate easier international financial transactions from the country and increase loan purchases, according to experts.
“First of all, I think investments can accelerate in areas directly related to financial crimes, such as fintech,” said Ussal Shahbaz, managing partner of Ussal Consulting. “In other areas, a factor that global investors did not directly express, but which caused them to be hesitant towards Türkiye, is eliminated.”
Shahbaz noted that getting out of FATF’s grey list will positively affect technology investments in the medium and long term.
“We will see the effects of this within months. However, we should not forget that reforms need to be made in many other areas to increase foreign investments,” he said.
Türkiye’s removal from the list was announced by Treasury and Finance Minister Mehmet Simsek with a post on his social media account that read: “We did it!” Türkiye was removed from the list after three years.
Türkiye was placed on the grey list first in 2021 due to insufficient measures against money laundering and terrorism financing. However, in the following years, Türkiye complied with 39 out of 40 FATF standards, marking significant progress.
Previously, strict regulations due to Türkiye’s grey list status discouraged many international investment funds. Now that Türkiye is off the list, these funds are free to invest in the country.
