VZCZCXYZ0002
OO RUEHWEB

DE RUEHAK #0234 0430528
ZNR UUUUU ZZH (CCY AD21B0B0 AMG1917-695)
O 120528Z FEB 10
FM AMEMBASSY ANKARA
TO RUEATRS/TREASURY DEPT WASHDC IMMEDIATE
INFO RHEHAAA/NSC WASHDC IMMEDIATE
RUEHC/SECSTATE WASHDC IMMEDIATE 2103

UNCLAS ANKARA 000234 
 
SENSITIVE 
SIPDIS 
C O R R E C T E D COPY CAPTION 
TREASURY FOR U/S LEVEY, AA/S ANDEW BAUKOL AND DAS DANIEL 
GLASER, NSC FOR SHERWOOD-RANDALL AND BRINK 
 
E.O. 12958: N/A 
TAGS: EFIN KTFN PTER PREL TU
SUBJECT: TURKEY: GOT ARGUES PUBLIC LISTING BY FATF WOULD BE 
UNFAIR 
 
REF: 09 ANKARA 1725 
 
¶1.  (SBU)  MFA U/S Feridun Sinirlioglu summoned the 
Ambassador February 8 to argue that Turkey should not be 
publicly named by the Financial Action Task Force (FATF) for 
deficiencies found in the FATF's special review.  Sinirlioglu 
argued that when the FATF began this special review, the 
Mutual Evaluation Review (MER) reports on more than 50 other 
countries ) including many in Europe ) were not finalized 
and they therefore were not considered for inclusion.  Some 
of those countries have problems more serious than Turkey's. 
Turkey has cooperated fully with FATF, Sinirlioglu argued, 
but the process was conducted in haste, had some 
discrepancies (unspecified) and was not objective. 
 
¶2.  (SBU)  Any country that is listed by FATF as even 
partially deficient will be hard hit from an international 
investment perspective, competing against many of the 50 
countries whose AML/CTF regimes were not reviewed.  Turkey is 
therefore at a disadvantage, and including Turkey on a public 
list is simply unfair until all countries are reviewed. 
 
¶3.  (SBU)  Sinirlioglu noted that Turkey has formed a task 
force to address its deficiencies and will present draft 
legislation soon to the Parliament, but the legislative 
process is slow and FATF needs to be patient.  Repeating that 
many European countries were not even subject to the special 
review, he asked that FATF give Turkey fair treatment. 
 
¶4.  (SBU)  Ambassador noted that the US is pleased with the 
task force that Turkey has set up and the seriousness that 
Finance Minister Simsek and the GOT has shown recently in 
addressing FATF's concerns.  However, the US and FATF have 
tried to work with Turkey over the past five years to help 
Turkey change its definition of terrorism and terror 
financing legislation to ensure tighter controls, but Turkey 
has been slow to act. 
 
¶5.  (SBU) Comment:  If the Turks' contention is accurate -- 
that more than 50 countries, some of whom compete directly 
with Turkey for investment, were not subject to this review 
-- publicly listing Turkey could well put it at a competitive 
disadvantage.  The domestic political debate over the GOT's 
Kurdish opening and attempts to bring the PKK down from the 
mountains guarantees that passing any legislation on 
terrorism will be difficult, and the perception that it 
responds to a foreign demand will make it even harder to 
pass.  It at all possible, we recommend that Turkey,s public 
listing be delayed, with a firm warning to Turkey that 
without concrete progress it will be listed in 2011. 
 
 
Jeffrey 
 
           "Visit Ankara's Classified Web Site at 
http://www.intelink.s gov.gov/wiki/Portal:Turkey"