 as part of a large-scale money-laundering investigation targeting currency exchange offices operating in the city’s historic Grand Bazaar, the state-run Anadolu news agency reported.){kind=link}
İstanbul prosecutors have announced the detention of 76 suspects and the seizure of assets worth 335 million Turkish lira ($7.9 million) as part of a large-scale money-laundering investigation targeting currency exchange offices operating in the city’s historic Grand Bazaar, the state-run Anadolu news agency reported.
According to a statement from the İstanbul Chief Public Prosecutor’s Office on Tuıesday, the operation, the fourth in an ongoing probe, targets a network accused of laundering proceeds from illegal betting, forex investment scams and other fraud schemes through front companies and currency exchange offices.
Prosecutors said the investigation, based on reports from Turkey’s Financial Crimes Investigation Board (MASAK) and expert analyses, found that criminal proceeds were funneled through accounts opened under false names and front companies.
The network allegedly used a separate internal accounting system to track illicit transfers, disguising the origins of funds through local banks, e-money institutions, exchange bureaus and cryptocurrency platforms.
The latest operation, carried out across 10 provinces, led to the arrest of 76 people, including executives of front companies and exchange offices in the Grand Bazaar.
Among the companies named in the prosecutor’s statement were Hotto Yazılım Ticaret A.Ş. and Coinvest Liz Bilişim A.Ş., which are suspected of having been created solely to facilitate the movement and laundering of criminal funds.
As part of the investigation prosecutors said 31 vehicles and 74 real estate properties worth a combined 335 million lira were seized.
The prosecutor’s office said the investigation into money laundering, illegal betting and investment fraud was ongoing.
FATF visit
Tuesday’s operation comes at a time when an evaluation team from the Financial Action Task Force (FATF) is expected to visit the country this month, nearly a year after Turkey was removed from the organization’s “grey list” for progress in tackling money laundering and terror financing, according to a report by Reuters.
Turkey was added to the grey list in October 2021, shortly before the country’s currency entered one of its most serious crises, due to what the watchdog said was insufficient oversight of sectors vulnerable to money laundering, including banking and real estate.
Over the past weeks Turkish authorities have launched multiple investigations into alleged money laundering and suspended or seized the operations of dozens of companies.
According to central bank announcements published in the Official Gazette, at least 10 payment companies, among them the prominent Papara brand, have had their licenses suspended or revoked, some over alleged illegal transactions. The central bank currently lists 61 licensed electronic money institutions.