Turkey joins Pakistan on FATF greylist for failing to check terror financing

Global terror financing watchdog Financial Action Task Force (FATF) on Thursday added Turkey to its 'Grey List' of countries along with Pakistan. While the FATF has retained Pakistan under increased monitoring (grey list) for failing to deliver four action items, it also greylisted Turkey over its 'terror financing for Al Qaeda.'

The Financial Action Task Force expressed concern over Turkey's current evolving money laundering and terrorist financing risk environment in Taliban-ruled Afghanistan. 

“We affirm recent UNSC resolutions on situation Afghanistan. We demand that country not be used to plan or finance terrorist acts. Three countries on the FATF list: Jordan, Mali, and Turkey. They have all agreed on an action plan with the FATF,” the watchdog said.

"Turkey had a mutual evaluation, assessment in late 2019. The report outlined a large number of serious issues regarding Turkey's effort to prevent and combat money laundering and terrorist financing. Since then, Turkey has made some progress across all areas of concern, however, serious issues remain," said FATF president Dr. Marcus Pleyer.

"This includes issues concerning supervision, in particular high-risk sectors such as banks, precious stone dealers, and real estate agents," added Pleyer.

The FATF president also advised Turkey to effectively tackle complex money-laundering cases."Turkey needs to show it is effectively tackling complex money-laundering cases and show it is pursuing terrorist financing prosecutions in line with its risks and prioritizing cases of UN-designated terrorist organizations such as ISIL and Al Qaeda. It is crucial for Turkey to make sure that it effectively tackles money laundering and terrorist financing, serious organized crimes, and corruption," he said.

Pleyer urged Turkey to turn its commitment to taking concrete action regarding money laundering and terror financing. The move is a heavy blow to Turkish President Recep Tayyip Erdogan, given the country's fragile economy and record heavy losses against the US dollar. The greylisting will curtail Turkey's power to raise international investment

FATF retains Pakistan on the grey list

Meanwhile, Pakistan will remain on the FATF grey list as it failed to curb terror financing of United Nations proscribed terrorists living in its territory. In its 'High-Risk Jurisdictions subject to a Call for Action' document, the intergovernmental organization said that Pakistan needed to take more steps against terror financing.

FATF President said, “Pakistan remains under increased monitoring (grey list). Its govt has a 34-point action plan of which 30 items have been addressed. Pakistan has largely addressed 30/34 items, most recent action plan which was in June this year focused on money laundering,” he added.

There are 23 countries on FATF's updated grey list, including Albania, Barbados, Burkina Faso, Cambodia, The Cayman Islands, Haiti, Jamaica Jordan, Mali, Malta, Morocco, Myanmar, Nicaragua, Pakistan, Panama, Philippines, Senegal, South Sudan, Syria, Turkey, Uganda, Yemen, Zimbabwe.  

Courtesies that were removed from the FATF greylist on Thursday are Botswana and Mauritius.