Erdogan Unfazed Despite FATF Lens On Ankara
New Law set to Boost Illicit Transfer of Wealth
Erdogan helping Russia Iran evade US sanctions?
Is Turkey turning into a Mafia staff under Erdogan?
Turkey is reportedly taken yet another step in boosting the illicit transfer of wealth with no questions asked by the authorities . Turkish President recap Tayyip Erdogan recently signed a law that allows transfer of assets to Turkey without a requirement to explain their origin.
The move comes despite Turkey being under FATF scanner for money laundering and terror financing. Turkish opposition leaders have accused Erdogan of turning the country into a heaven for money laundering and illegal funding .
A Hurriedly Passed Law
The Turkish Govt led by Erdogan recently rushed the “Wealth Amnesty” bill through the Turkish parliament . The amendment was brought to parliament agenda by Erdogan Party during a debate on the floor on July 1,2022. The amendment was quickly approved by parliament which is controlled by President Erdogan Justice and Development Party (AKP)
No provision was included for such an amnesty in the draft bill and no amendment was proposed before it was sent to the floor .
Opposition parties were reportedly informed about the amendment 10 minutes before it was introduced on the floor .
The amendment was later approved with little debate about what it actually entailed as per reports . Analysts say the goal was to avoid any discussion of money laundering allegations
Provisions of The New Law
Permits individuals and entities to bring an assets from abroad
Assets can include those not previously declared in Turkey
Assets include cash, gold and other capital wealth
Cutoff date has been fixed for March 31,2023
No audit or investigation will be done on such assets
No taxes if funds kept in a bank for at least a year
The analysts say the law provides total immunity for money launderers drug traffickers and others who transfer their wealth to Turkey . Experts say those who were already under investigation by government auditors will also able to exploit the new law .
Turkey Opposition Parties Cry Foul
The opposition caught by surprise by the last-minute amendments has protested against the bill . Opposition parties accused the Erdogan Government of turning Turkey into a money laundering hub .
If you pass laws that allow the laundering of money and turn Turkey into a money laundering center with such amendments . It means you are throwing this country into a disaster (Abdull Atif Sener Opposition lawmaker from CHP .
IS Turkey Becoming a Safe Haven for Money Launderers?
In the last decade both state and non-state actors have found it quite easy to park their money in Turkey . Both Iran and Russia have tapped into Turkey Banking System to bypass sanctions imposed by the US and its western allies.\
Organiszed Crime Network and Terror Organizations were allowed to use Turkey as a hub for moving funds . This not the first time the Erdogan Govt has pushed for loopholes for people who bring cash and assets into the country .
In 2016 a similar provision was pushed through Parliament , Providing total immunity from both criminal and administrative probes into such transfers . The provision which was intended to be temporary has been extended seven times since then.
The Turkis Government has not revealed the amount of money declared as part of the wealth amnesty in 2016 and the following years . President Erdogan is accused of bringing in Billions from abroad that he allegedly obtained from kickbacks and bribes .
Previous investigations have revealed that Erdogan connived with Iranian officials to help them launder Iranian Govt money . Tehran is said to have used the Turkish state Bank Halk bank in order to avoid Us sanctions .
Expert fear that the new law could now Russian Oligarchs to park their funds in Turkish banks . Turkey is also the only NATO nation that did not impose any sanctions on Russia for its invasion of Ukraine .
Turkey On FATF Radar For Terror Financing
In October 2021 The Financial Action task force (FATF) placed Turkey on its gray list of countries . The Global Watchdog found a number of strategic deficiencies in Turkey ability to combat money laundering and terror financing.
However instead of addressing shortcomings the Erdogan govt seems to have deliberately created more Loopholes .
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