The Turkish government has intensified its transnational repression against dissidents, using financial systems to silence dissenters abroad, the Stockholm Center for Freedom reported, citing a recent report by the Institute for Diplomacy and Economy (instituDE).
The instituDE report details how the administration of Turkish President Recep Tayyip Erdoğan exploits mechanisms such as anti-money laundering and terrorism financing regulations, manipulating Know Your Customer (KYC) and Customer Due Diligence (CDD) protocols. By feeding politically biased and false information into watchlists, the government compels financial institutions to wrongfully label dissidents as “risky,” isolating them from financial services.
Moreover, since KYC and CDD processes also make use of public databases including social media, the Turkish government systematically exploits this vulnerability to target dissidents abroad by spreading false allegations online to discredit them.
The introduction of AI systems has significantly amplified this repression, the report finds. When these systems process biased data, they perpetuate existing biases, leading to unjust categorization of dissidents as high-risk, resulting in account closures and broader financial exclusion. Despite regulatory frameworks like General Data Protection Regulation (GDPR) and the forthcoming AI Act, significant gaps in compliance and accountability remain.
These tactics particularly target members of the Gülen movement, inspired by Turkish cleric Fethullah Gülen, as well as Kurds. The movement is accused by the Turkish government and Erdoğan of masterminding a failed coup on July 15, 2016 and is labeled a “terrorist organization,” although the movement denies involvement in the coup attempt or any terrorist activity.
Erdoğan’s government has long employed various methods to suppress dissent, including passport cancellations, asset seizures and stripping individuals of their pension entitlements. These tactics are part of a broader strategy that has intensified in recent years, as the government seeks to extend its reach beyond national borders and target dissidents living abroad.