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Turkiye welcomes removal from a key money-laundering watchlist, hoping to boost foreign investment

Turkiye's President Recep Tayyip Erdogan, left, shakes hands with Sweden's Prime Minister Ulf Kristersson, right, as NATO Secretary General Jens Stoltenberg looks on prior to a meeting ahead of a NATO summit in Vilnius, Lithuania, Monday, July 10, 2023. (Yves Herman, Pool Photo via AP, File) Turkiye's President Recep Tayyip Erdogan, left, shakes hands with Sweden's Prime Minister Ulf Kristersson, right, as NATO Secretary General Jens Stoltenberg looks on prior to a meeting ahead of a NATO summit in Vilnius, Lithuania, Monday, July 10, 2023. (Yves Herman, Pool Photo via AP, File)
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ANKARA, Turkiye -

Turkiye on Friday welcomed a decision by an international watchdog to remove it from a so-called 鈥"gray list" of countries that have not fully implemented measures to fight money laundering and terrorism financing.

The announcement by the Financial Action Task Force in Singapore could bolster foreign investments in Turkiye, which is trying to rebound from a deep economic downturn.

鈥淲e succeeded,鈥 Turkish Finance Minister Mehmet Simsek wrote on the social media platform X, as the decision was being announced.

Vice-President Cevdet Yilmaz said: 鈥淲ith this development, international investors鈥 confidence in our country鈥檚 financial system has become even stronger. The decision will have extremely positive consequences for the financial sector and the economy.鈥

Being on the watchdog鈥檚 gray list can scare away investors and creditors, hurting exports, output and consumption. It also can make global banks wary of doing business with a country.

FATF President T. Raja Kumar, who is finishing his two-year term, said Turkiye was taken off the gray list because of the 鈥渟ubstantial progress鈥 that it has made.

Kumar said a FATF team visited Turkiye in May and confirmed that the country had taken 鈥渟ubstantive steps鈥 to improve its anti-money laundering regime, addressing all the items in its action plan.

As examples he cited Turkiye's complex investigations into and prosecutions of money laundering and terrorist financing. Turkiye was placed on the list in 2021.

鈥淲e will with determination continue our fight against organized crime organizations, the traffickers of poison (drugs), the immigrant smuggling rings, the money-laundering criminal groups, and especially against the financing of terrorism and of those traitors,鈥 Turkiye's Interior Minister Ali Yerlikaya wrote on X.

Jamaica was also removed from the gray list, while Monaco and Venezuela were added, Kumar said. The United Arab Emirates was taken off the list earlier this year.

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