UPDATE - Türkiye removed from Financial Action Task Force grey list

UPDATES WITH REMARKS BY TURKISH VICE PRESIDENT

By Tuba Ongun

Türkiye has been removed from the grey list of the Financial Action Task Force (FATF) after three years of efforts.

Türkiye will no longer be subject to the FATF’s increased monitoring process, the international watchdog said on Friday following its plenary meeting, thanks to Türkiye's action plans to resolve the identified strategic deficiencies within agreed timeframes.

The plenary congratulated Türkiye for its "significant progress in addressing the strategic anti-money laundering and combating the financing of terrorism (AML/CFT) deficiencies previously identified" during its mutual evaluations.

"Thanks to the right steps taken, Türkiye has been removed from the grey list," the Turkish Treasury and Finance Ministry said in a statement.

Türkiye will continue to fight against money laundering and terrorist financing with determination in full compliance with international standards, the statement added.

The ministry pledged to further strengthen the administrative and technical capacity of Türkiye’s Financial Crimes Investigation Board (MASAK) and to implement legal and administrative regulations "with the same sensitivity."

Earlier on Friday, in expectation of the good news on the long-pursued goal, Treasury and Finance Minister Mehmet Simsek wrote on X, simply: "We made it.”

- Move set to boost confidence of international investors

The move helps further strengthen international investors’ confidence in Türkiye’s financial system, said Turkish Vice President Cevdet Yilmaz.

"The decision will have extremely positive results for both our financial sector and our real sector," Yilmaz wrote on X.

The inflow of international capital will be accelerated, and borrowing costs will be positively impacted, he stressed.

"The acceleration of capital flows to our country and rising interest in Turkish lira assets will also accelerate the disinflation process."