The Financial Action Task Force has removed Turkey from its “grey list” of countries that face tighter monitoring for money laundering and terrorism financing, citing “significant progress” in the country's fight against illicit actions in the sector.
The move is expected to boost investor confidence in Turkey's economy, which has been grappling with high inflation and pressure on its currency.
“Turkey strengthened the effectiveness of its AML/CFT [anti-money laundering and combating the financing of terrorism] regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in October 2021,” the Paris-based FATF said in a statement on Friday.
Turkey held discussions with the FATF last month to assess its strategy on dealing with illicit financial activity, after the global body that combats money laundering and terrorism financing in February said Ankara had “substantially completed its action plan”.
The country, however, “should continue to work with the FATF to sustain its improvements in its AML/CFT system, including by continuing to ensure its oversight of the NPO [non-profit organisation] sector is risk-based and in line with FATF standards”.
The move will support international investors' confidence in the country's financial system, Turkey's Vice President Cevdet Yilmaz said on X.
The decision will have “extremely positive consequences” for the financial sector, “accelerate international resource inflow and have a positive impact on borrowing costs”, he added.
The move could help improve Turkey's economic prospects and make it more attractive for foreign investment, agreed Rania Gule, a market analyst at XS.com.
“It would positively impact its standing and economic strategy by boosting its reputation, potentially increasing foreign direct investment, improving credit ratings, lowering borrowing costs and facilitating international trade,” she said.
Money laundering and terrorist financing are among the biggest problems in the financial world. Activities related to these crimes in one country can have seriously adverse effects across borders and sometimes have global ramifications, according to an International Monetary Fund report last year.
The FATF, an initiative of G7 economies, was set up in 1989 to lead the worldwide action to tackle money laundering and terrorism and proliferation financing.
The 39-member body sets international standards to ensure national authorities can effectively clamp down on funds linked to drug trafficking, illicit arms trade, cyber fraud and other serious crimes.
More than 200 countries and jurisdictions have committed to adopt the FATF’s standards and they are assessed with the help of nine associate member organisations and other global partners, such as the IMF and World Bank.
An estimated €715 billion ($765.7 billion) to €1.87 trillion of global GDP is tainted by money-laundering activities, representing 2 per cent to 5 per cent of total worldwide economic activity, according to data from Europol, the EU's law enforcement agency.
Getting off the FATF grey list was vital for Turkey, which is facing chronic inflation after years of President Recep Tayyip Erdogan's unorthodox policies. After winning the election last year, he installed a new team to stabilise the economy and control consumer prices.
However, inflation jumped to 75.45 per cent last month, the country's national statistics office reported this month, although Ankara expects the economy to improve steadily and inflation to drop to about 36 per cent by the end of this year.
The Turkish lira is among the worst performers of emerging market currencies tracked by Bloomberg.
On March 21, Turkey’s central bank delivered a surprise interest rate rise, increasing its benchmark rate to 50 per cent from 45 per cent, tightening monetary policy further to fight stubbornly high inflation.
In May, S&P Global Ratings upgraded Turkey's credit rating outlook, citing the government's strategy of taking a more balanced approach that was expected to generate confidence in its economy.
“Being on the grey list made it challenging for the Turkish government to attract foreign investment, particularly at a time when the country is already facing financial hardship and economic challenges,” Ms Gule said.
On Friday, the FATF also removed Jamaica from its grey list, citing progress in the Caribbean island nation's fight against money laundering.
“Jamaica strengthened the effectiveness of its AML/CFT regime to meet the commitments in its action plan regarding the strategic deficiencies that the FATF identified in February 2020,” the FATF said.
Who is Mohammed Al Halbousi?
The new speaker of Iraq’s parliament Mohammed Al Halbousi is the youngest person ever to serve in the role.
The 37-year-old was born in Al Garmah in Anbar and studied civil engineering in Baghdad before going into business. His development company Al Hadeed undertook reconstruction contracts rebuilding parts of Fallujah’s infrastructure.
He entered parliament in 2014 and served as a member of the human rights and finance committees until 2017. In August last year he was appointed governor of Anbar, a role in which he has struggled to secure funding to provide services in the war-damaged province and to secure the withdrawal of Shia militias. He relinquished the post when he was sworn in as a member of parliament on September 3.
He is a member of the Al Hal Sunni-based political party and the Sunni-led Coalition of Iraqi Forces, which is Iraq’s largest Sunni alliance with 37 seats from the May 12 election.
He maintains good relations with former Prime Minister Nouri Al Maliki’s State of Law Coaliton, Hadi Al Amiri’s Badr Organisation and Iranian officials.
It's up to you to go green
Nils El Accad, chief executive and owner of Organic Foods and Café, says going green is about “lifestyle and attitude” rather than a “money change”; people need to plan ahead to fill water bottles in advance and take their own bags to the supermarket, he says.
“People always want someone else to do the work; it doesn’t work like that,” he adds. “The first step: you have to consciously make that decision and change.”
When he gets a takeaway, says Mr El Accad, he takes his own glass jars instead of accepting disposable aluminium containers, paper napkins and plastic tubs, cutlery and bags from restaurants.
He also plants his own crops and herbs at home and at the Sheikh Zayed store, from basil and rosemary to beans, squashes and papayas. “If you’re going to water anything, better it be tomatoes and cucumbers, something edible, than grass,” he says.
“All this throwaway plastic - cups, bottles, forks - has to go first,” says Mr El Accad, who has banned all disposable straws, whether plastic or even paper, from the café chain.
One of the latest changes he has implemented at his stores is to offer refills of liquid laundry detergent, to save plastic. The two brands Organic Foods stocks, Organic Larder and Sonnett, are both “triple-certified - you could eat the product”.
The Organic Larder detergent will soon be delivered in 200-litre metal oil drums before being decanted into 20-litre containers in-store.
Customers can refill their bottles at least 30 times before they start to degrade, he says. Organic Larder costs Dh35.75 for one litre and Dh62 for 2.75 litres and refills will cost 15 to 20 per cent less, Mr El Accad says.
But while there are savings to be had, going green tends to come with upfront costs and extra work and planning. Are we ready to refill bottles rather than throw them away? “You have to change,” says Mr El Accad. “I can only make it available.”
Four tips to secure IoT networks
Mohammed Abukhater, vice president at FireEye in the Middle East, said:
- Keep device software up-to-date. Most come with basic operating system, so users should ensure that they always have the latest version
- Besides a strong password, use two-step authentication. There should be a second log-in step like adding a code sent to your mobile number
- Usually smart devices come with many unnecessary features. Users should lock those features that are not required or used frequently
- Always create a different guest network for visitors
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Company Profile
Name: JustClean
Based: Kuwait with offices in other GCC countries
Launch year: 2016
Number of employees: 130
Sector: online laundry service
Funding: $12.9m from Kuwait-based Faith Capital Holding
UAE currency: the story behind the money in your pockets
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
Bio:
Favourite Quote: Prophet Mohammad's quotes There is reward for kindness to every living thing and A good man treats women with honour
Favourite Hobby: Serving poor people
Favourite Book: The Alchemist by Paulo Coelho
Favourite food: Fish and vegetables
Favourite place to visit: London
First Person
Richard Flanagan
Chatto & Windus
UAE currency: the story behind the money in your pockets
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
