Turkey is taking significant steps to enhance its anti-money laundering regulations related to crypto assets in a bid to remove itself from the Financial Action Task Force’s (FATF) “grey list.”
According to the country’s Finance Minister, Mehmet Simsek, fresh legislation concerning crypto assets is among the remaining issues to be addressed for full compliance with FATF standards.
“The only remaining issue within the scope of technical compliance is the work related to crypto assets,” Simsek said.
The move follows the decision of the FATF in 2021 to downgrade Turkey to its “grey list” of countries that were found to have insufficient measures in combating money laundering and terrorism financing.
As a response to this situation, Simsek has announced that the government is working on a proposal related to crypto assets, which will be submitted to the parliament at the earliest opportunity.
Turkey’s geographic location poses unique challenges, making it susceptible to money laundering risks stemming from various criminal activities such as drug trafficking, migrant smuggling, human trafficking, and fuel smuggling.
The country also faces significant threats related to terrorist financing, both at the national and international levels, as highlighted by the FATF.
This proactive approach underscores the global importance of regulatory measures and international compliance when it comes to cryptocurrencies.
As the nation works toward improving its regulatory framework, it aims to strengthen its position in the international financial community and ensure its adherence to established standards for anti-money laundering and combating the financing of terrorism.