What does the FATF Ask Turkey to Do? Evaluation Note / N. Emrah Aydınonat

"The Financial Action Task Force (FATF) decided to suspend Turkey’s membership on 22 February 2013 unless Turkey complies with FATF standards for combating money laundering and terrorist financing. Also, Turkey might possibly face international sanctions for not taking necessary anti-terrorist financing measures. This could cause a serious damage on Turkey’s banking and financial system and a negative impact on international investments towards the country. Yet, the possible consequences are not limited to the financial system. International organizations that recognize the FATF standards – the UN, OECD and the IMF among others – are waiting for Turkey to enact a legal framework that will authorize the freezing of terror-related assets and bank accounts without any court ruling. “The Draft Bill on the Prevention of Terrorist Financing” currently on the Parliament agenda, stipulates the establishment of an Asset Freezing Commission which shall be authorized to freeze assets associated with terrorist activities. The draft is criticized for this very reason, for it might allow arbitrary use of authority and give way to human rights violations."