Turkish Minister Says Asset Peace Rules Not Linked to FATF Gray List

Turkish Treasury and Finance Minister Mehmet Şimşek has dismissed concerns that the country's 'asset peace' (varlık barışı) regulations could lead to its re-inclusion on the FATF 'gray list'. He stated that there is no connection between the two issues and that FATF reports have not criticized the asset peace measures. The 'gray list' refers to jurisdictions under increased monitoring for deficiencies in anti-money laundering and counter-terrorism financing regimes. Turkey was placed on the list in 2021 and has been working to address FATF's concerns. The asset peace program allows individuals and companies to declare previously undeclared assets abroad or domestically with reduced penalties, aimed at boosting tax revenue. Critics argue it could facilitate illicit financial flows, but Şimşek insists it is compliant with international standards.

Global Impact

Politically, the statement shores up investor confidence in Turkey's commitment to international financial standards, supporting the lira and Turkish bond yields in the short term. Economically, it removes a potential obstacle to foreign capital inflows, which are critical for Turkey's current account financing.