Turkey and Vatican Sign AML Agreement
Turkey and the Vatican have reached an agreement on anti-money laundering (AML) cooperation. The move is a step toward strengthening Turkey's financial compliance regime and aligning it with international standards, a key development for the country's growing fintech and crypto sectors.
The agreement for financial intelligence sharing was signed between Turkey's Financial Crimes Investigation Board (MASAK) and the Vatican's Supervisory and Financial Information Authority. This move is part of a broader and successful push by Turkey to enhance its financial oversight framework and align with global standards. This cooperation comes on the heels of a major win for Turkey's financial reputation. In June 2024, the Financial Action Task Force (FATF) officially removed Turkey from its "grey list" of jurisdictions under increased monitoring. The country had been on the list since October 2021 for concerns about money laundering and terrorist financing. FATF's decision to delist Turkey followed a determination that the country had made "significant progress" and substantially completed its action plan to address strategic deficiencies in its anti-money laundering and counter-terrorist financing regime. This removal is expected to boost international investors' confidence in Turkey's financial system and have positive consequences for the economy. The Vatican has also been strengthening its financial transparency. Its financial watchdog, formerly known as the Financial Information Authority (AIF) and now the Supervisory and Financial Information Authority (ASIF), has been working with Moneyval, the Council of Europe's anti-money laundering body, to improve compliance. These reforms include updates to laws on transparency and supervision to better align with international standards. This improved regulatory environment is critical for Turkey's booming fintech and crypto sectors. The Turkish fintech market was valued at over $76 billion in 2023 and is projected to grow significantly. The cryptocurrency market is also substantial, reaching over $32 billion in 2024 and expected to nearly triple by 2033. Investor appetite for Turkish fintech remains strong. In 2025, fintech startups attracted a record $219.7 million. Major deals included investment platform Midas raising $80 million in a Series B and payments company Sipay securing $78 million, valuing it at $875 million. The growing alignment with international financial standards can only further de-risk these opportunities for VCs.
