 as part of an investigation into alleged illegal betting and fraud.){kind=link}
İstanbul prosecutors have detained 26 people and put payment platform IQ Money under the control of Turkey’s Savings Deposit Insurance Fund (TMSF) as part of an investigation into alleged illegal betting and fraud, the private IHA news agency reported on Tuesday.
Detention warrants were issued for 28 suspects, and authorities are still searching for the remaining two. Prosecutors also seized the company’s movable and immovable assets as well as its partnership shares.
The operation follows a report by Turkey’s Financial Crimes Investigation Board (MASAK), which said it had identified roughly 155 billion lira ($3.6 billion) in transaction volume that it deemed “incompatible with ordinary commercial activity.” MASAK said IQ Money continued to operate despite the central bank’s earlier revocation of its license.
According to the report transactions were carried out at high frequency and within very short time periods, with what MASAK called an “abnormal imbalance” between deposits and withdrawals. About 78 billion lira ($1.8 billion) processed through the platform is strongly suspected of being linked to illegal betting, qualified fraud and money laundering.
Prosecutors said company executives attempted to conceal suspicious activity by routing transactions through personal bank accounts and obstructing oversight by submitting incomplete, delayed or missing documentation.
The report also revealed irregularities in IQ Money’s POS services, including improper contract procedures, concentrated high-risk and repetitive POS activity and the deliberate disabling of risk-control mechanisms during merchant onboarding. MASAK said these findings “fully correspond” with complaints filed regarding illegal betting and fraud.
Turkish authorities have in the past months 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 brand Papara, have had their licenses suspended or revoked, some over alleged illegal transactions. The central bank currently lists 61 licensed electronic money institutions.
The operations come amid reports that an evaluation team from the Financial Action Task Force (FATF) is expected to visit Turkey this month, nearly a year after the country was removed from the organization’s “grey list” for progress in tackling money laundering and terror financing.
Five sources told Reuters last week that the visit is aimed at assessing whether Ankara has maintained the commitments that led to its removal from the list. Failure to do so could result in Turkey being put back under increased monitoring, potentially hurting its improving financial reputation.
According to the sources the FATF delegation plans to hold meetings from November 24 to 28 with MASAK, banks, payment service providers and other institutions across the economy. The review could last as long as three weeks.
Turkey was added to the grey list in October 2021, shortly before the country’s currency entered one of its most severe crises, due to what the watchdog said was insufficient oversight of sectors vulnerable to money laundering, including banking and real estate.