Turkey has been “gray-listed” by a global financial watchdog for its alleged failure to tackle money laundering and terrorist financing, in a blow that could see Turkey lose billions in foreign investment.

According to Financial Time newspaper, two anonymous Western officials told him yesterday that the Paris-based Financial Action Task Force (FATF) was “very likely” to approve the decision to put Turkey on its gray list, following discussions on the matter. ‘today.

FATF members have now voted to include Ankara on this list, which means that it must be subject to special monitoring by the organization’s International Cooperation Review Group, making it an addition to over 22 other states already on this list, including Morocco, Syria, Albania, Pakistan, Yemen and South Sudan.

Ahead of today’s ruling, the newspaper quoted an anonymous Turkish official as saying that “Turkey has made significant progress in complying with FATF standards and fulfilled its legislative responsibilities” despite the pandemic of Covid-19 and the ongoing lockdowns.

In December 2019, the FATF warned Ankara that it was threatened with “money laundering and terrorist financing”, and that there would be “serious loopholes in the country’s framework to combat these crimes”.

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The FATF decision is expected to have a severe impact on the Turkish economy and deter foreign investors from entering the Turkish market, especially at a time when foreign investment is already near the lowest level on record in 20 years. reign of President Recep Tayyip Erdogan.

It also comes at a time when Ankara is going through a severe economic crisis, with the Turkish Lira losing around 20% of its value against the US dollar this year alone.

The gray watchdog list would have a huge impact on a country’s economic status and reputation within the international community, and the International Monetary Fund (IMF) has previously reported that it costs a country around 3%. of its GDP. In Turkey’s case, this drop would amount to around $ 23 billion.

The move is also expected to potentially influence the European Union (EU) to add Turkey to its own list, which targets money laundering and non-EU countries it sees as a serious threat to the financial system. of the block.

Erdogan reportedly responded furiously to the FATF decision, threatening to expel ten ambassadors from Western countries.

Other countries that have today been added to the gray list alongside Turkey are Jordan and Mali.

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