Jun.27, 2010, 14:17

Turkey will make amendments in its laws within the scope of its commitments to OECD pertaining to combat against money laundering and dry out sources financing "terrorism".

Financial Crime Research Board of Turkey's Finance Ministry "prepares the arrangements on dealing with terrorist financing in line with the directives of Financial Action Task Force (FATF) of OECD, a unit to counter the financing of terrorism and to deal with money laundering", Anadolu news agency said.

The board prepared a draft law on the matter and presented this draft to the related institutions for assessment.

The draft, which will take a final shape after the assessments, "re-defines terrorist financing in a way to include acts of terrorism in foreign countries, not only those within Turkey," the agency said.

The draft "establishes a mechanism to freeze the assets to combat terrorist financing" and this new mechanism envisages UN Security Council resolutions as decisive. Under the draft law, property of those extending financial support to terrorism would be frozen.

Under the current regulations in Turkey, there is no regulation to freeze the property and no mechanism to implement resolutions of the UN Security Council.

The draft law, under a sub-title, arranges demands of other countries on financing of terrorism. It regulates how and with which mechanism this demand would be relayed to Turkey.

Turkey submitted 2nd Progress Report to FATF General Assembly held in Abu Dhabi this year. The General Assembly decided for Turkey to "remain in regular follow-up process on condition that Turkey overcomes its deficiencies regarding financing of terrorism," the report said.

Turkey was asked to convey the developments on arrangements and practices on the matter to FATF till June.

International Cooperation Review Group or "ICRG" process started after FATF was asked to take measures against countries which fail to cooperate in complying with the

international standards in dealing with money laundering and terrorist financing.

83 countries, including Turkey, were included within the pool of observation under criteria identified by FATF within ICRG process. Number of those 83 countries was later dropped to 39 and two lists were formed.

Turkey is in the second list of FATF, in which 20 countries made high level commitments to eliminate their deficiencies and prepared action plans.

In 2008, ministers widened the FATF mandate by also including "other emerging threats". In this context, proliferation of financing is an area where the FATF can add value to the wider efforts of the international community.