Trade-based financial crime features in Turkey’s downgrade to FATF’s grey list

Concerns over trade-based financial crime contributed to the decision by the Financial Action Task Force (FATF) to add Turkey to its grey list of jurisdictions subject to increased monitoring for failing to adequately implement anti-money laundering and counter financing of terrorism(AML/CFT) measures.

Jordan and Mali have also been added to the grey list while Botswana and Mauritius are no longer grey-listed.

Banks, gold and precious stones

Turkey needs to address “serious issues of supervision in particular high-risk sectors such as banks, gold and precious stones dealers and real estate agents in its banking and real estate sectors, and with gold and precious stones dealers,” according to FATF president Marcus Pleyer.

Speaking at the close of the FATF’s October 2021 plenary meeting, he said Turkey must also show it is effectively tackling complex money laundering cases, pursuing terrorist financing prosecutions and prioritising cases of UN-designated terrorist organisations such as ISIL (Islamic State) and Al Qaeda.


Jordan and Mali have also been downgraded to the grey list. Jordan responded by announcing a national plan to be implemented by 20 relevant authorities – including the supervisory bodies of the financial, non-financial, security and judicial sectors – to assess AML/CFT and proliferation of weapons of mass destruction systems.

Mali was one of just nine jurisdictions that demonstrated “zero effectiveness in both prevention and enforcement criteria” in its AML/CFT regime according to the Basel AML Index 2021 published last month.

Upgrades and black list

Botswana and Mauritius are no longer grey-listed after on-site visits by the task force confirmed both countries had strengthened their AML/CFT regimes.

North Korea and Iran remain the only two countries on the FATF’s high-risk black list.




Categories: Trade Based Financial crimes News

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