Turkey has taken "positive steps" towards improving its AML/CFT regime and as a result the country has been re-rated on six recommendations by the Financial Action Task Force (FATF).
In an update report, FATF re-rated to largely or fully compliant on five of its anti-money laundering recommendations, with only one remaining partially compliant requirement to fulfil in order to exit the grey list.
"The three follow-up reports and subsequent re-ratings since the 2019 assessment of Turkey's AML/CFT framework highlight the progress that Turkey has made to strengthen its measures to combat money laundering and terrorist financing", FATF said in the statement.
Turkey will report back to the FATF on progress achieved in improving the implementation of its AML/CFT measures in its 5th round mutual evaluation.
Recommendation 8 on monitoring of non-profit organisations saw a re-rating from partially compliant to largely compliant. The main deficiencies identified in the 2019 report have been addressed by revising national legislation, updating the regulation of associations, revising the audit guidance and auditors of association directive, and working with NPOs.
Recommendation 12 on politically exposed persons has been re-rated to compliant after legislation went live in November 2022 including a definition of PEPs and the measures that apply to them.
Turkey's rating was also raised from partially compliant to largely compliant on Recommendations 22 and 28 (regarding designated non-financial businesses and professions and their regulation and supervision and Recommendation 26 (regulation and supervision of financial institutions).
The recommendation 15 in relation to virtual assets was re-rated from Largely Compliant to Partially Compliant.
