Turkey understands the risks stemming from money laundering and terrorism financing but still has "serious shortcomings" in effectively tackling these issues despite strengthening its laws and regulations in recent years, the Financial Action Task Force said in a review of measures taken by the country to combat these issues.
The regulator said Turkish authorities coordinate and cooperate well but they need to leverage financial intelligence more effectively to increase the number of money-laundering investigations. It added that the country also needs to develop a national strategy aimed at preventing criminals from accessing and using the proceeds of their crimes.
It said the scope of investigations in Turkey related to terrorism financing is currently focused on identifying assets held by terror suspects and should be expanded to factor in the collection, transfer and use of funds.
The FATF said the country needs to "fundamentally improve its ability to freeze assets, without delay, linked to terrorism, money laundering and proliferation of weapons of mass destruction."