The Financial Action Task Force (FATF), the international standard-setter for combating money laundering, the financing of terrorism and proliferation of weapons of mass destruction, is deeply concerned by Turkey’s continued failure to take action to fully criminalise terrorist financing and establish an adequate legal framework for identifying and freezing terrorist assets consistent with the FATF Recommendations.
The third mutual evaluation report assessing Turkey’s compliance with the FATF Recommendations was adopted in February 2007. It highlighted serious deficiencies in the area of money laundering and terrorist financing. Since then Turkey has taken significant action in order to remedy some deficiencies and improve its anti-money laundering regime. However, over five years after the adoption of the evaluation report and despite the close and constant monitoring and a series of graduated measures taken by the FATF, no remedial action has been taken to improve Turkey’s counter terrorist financing regime.
An appropriate response by the FATF to the continued failure of one of its members to live up to its commitment to address serious deficiencies identified in a mutual evaluation is to consider suspension of membership. In June the FATF decided that it would initiate discussions on suspending Turkey’s membership if adequate legislation were not adopted by October 2012. As of this date, Turkey has still not taken necessary action; therefore, the FATF has decided to suspend Turkey’s membership on 22 February 2013 unless the following conditions are met before that date:
- Turkey adopts legislation to remedy deficiencies in its terrorist financing offence
- Turkey establishes a legal framework for identifying and freezing terrorist assets consistent with the FATF Recommendations.
The FATF looks forward to these conditions being met by Turkey so that the coming into force of the suspension can be avoided.
FATF press release link: click here