Turkish financial transparency and capital outflow scrutiny

Turkey is facing increased scrutiny regarding financial transparency and the movement of capital. Under the ‘Multilateral Competent Authority Agreement on the Automatic Exchange of Financial Account Information’, Turkey has accelerated the sharing of bank account data for Turkish citizens living abroad with foreign tax authorities. This has led to investigations in countries such as Germany into tax evasion and money laundering, particularly concerning undocumented cash deposits or undisclosed assets held by expatriates.

Simultaneously, concerns have emerged regarding the Turkish government’s failure to publish an official list of tax haven countries, a requirement under the 2006 Corporate Tax Law. This lack of transparency has led to allegations that certain entities are being protected from the 30 percent tax withholding required on offshore transfers. Reports indicate significant capital outflows, with MASAK findings suggesting that approximately 4.1 billion lira was transferred to Switzerland in late August 2026, alongside other movements to jurisdictions including Luxembourg, the United Kingdom, Dubai, and the British Virgin Islands.