the 2024 FATF decision on turkiye

THE 2024 FATF Decision on Türkiye

The 2024 FATF Decision on Türkiye is capable of presenting a new pathway for foreign direct investments to Türkiye. Potential results of the decision in question should be taken into evaluated carefully by all legal practitioners including business lawyers 

Introduction 

There has been a growing acceptance that Türkiye has been attracting more investment day by day. Investing in Istanbul may pave the way for ensuring an efficient solution for foreign investors. Particularly, rapidly increasing young population, growing value of currency rates and thus decreasing production and labor costs are core areas of business-friendly environment in Türkiye. 

Is Türkiye safe for investment? If you are curious about the answer to the question, you can read our article.

You can check out all our articles for doing business in Türkiye from our practice areas of Investment Advice

There have been several ways of investing in Türkiye. Take a look at our articles: 

Is Türkiye good for business?

Taking into account the strengthening rates of foreign currencies including Euro and Dollars, Türkiye is becoming a more popular investment area for foreign direct investments. Turkish markets offer a business-oriented environment together with low employment and facility costs.  Besides, several Turkish companies are interested in growing their business and extending their investments inside or outside the country. Investment advice by investment lawyers in Istanbul and investment lawyers in Ankara play a crucial role in growing businesses of foreign and domestic investors.

Regarding company formation, see our article on Establishment of a Company in Turkey

and Limited Liability Company Formation 

What are the main legal instruments governing corporate governance in Türkiye?

It is fundamental to underscore that Turkish Commercial Code (Numbered 6102) and Capital Markets Law (Numbered 6362) are two core legal texts to manage corporate governance practice in Turkey.

For more information about how the corporate governance system operates in Turkey, take a look at our practice areas of Corporate Governance

What is the role of FATF for the international community? 

The Financial Action Task Force (FATF) was established to fight against terrorist-financing and money-laundering across the globe. The FATF is an independent inter-governmental body dedicated to the promotion of policies and protection of the global financial system against money laundering and terrorist financing. Identification of high-risk jurisdictions is an important tool to enforce countries for better compliance of their legal, executive and judicial structure with the FATF Standards. If a country repeatedly fails to implement FATF Standards then it is regarded as a “High Risk Jurisdiction”, referred to as “the grey and black lists”.

Why do global investors choose to invest in Turkey?

What is the news about the 2024 FATF Decision on Türkiye? 

Based on the adoption of an up-to-date report by the Plenary of the FATF, Türkiye’s name has been removed from  “the grey and black lists”.  Removal of Türkiye’s name from the grey zone list was adopted particularly on the grounds of new preparation for the adoption of the 2024 Final Draft Crypto Bill. It is beyond doubt that such progress is of great importance in developing investment-friendly opportunities in Türkiye. Türkiye is seen to meet all commitments including by

  • applying dissuasive sanctions for anti money laundering breaches;
  • enhancing the use of financial intelligence to support money laundering investigations;
  • undertaking more complex money laundering investigations and prosecutions;
  • setting out clear responsibilities and measurable performance objectives and metrics for the authorities responsible for recovering criminal assets and pursuing terrorism financing cases;
  • conducting more financial investigations in terrorism cases,
  • prioritizing terrorist financing investigations and prosecutions; effective implementation of targeted financial sanctions United Nations Security Council Resolutions 1373 and 1267.

Conclusion

In the final analysis, Türkiye’s inclusion inside the grey list caused severe challenges to Türkiye about foreign direct investments up to now. From that sense, Türkiye’s removal from the grey list will have a direct influence upon increasing the scale of investments by foreigners within the jurisdiction of Türkiye. Increase in investor confidence will play a fundamental effect in economic conditions in Turkey.  Particularly, business lawyers should be ready to manage all existing and emerging outcomes of the 2024 FATF decision on Türkiye. 

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