ANKARA, Turkey — Turkey’s parliament began debating a draft law to combat terrorist financing Wednesday as the country seeks to avoid suspension from a key Organization for Economic Cooperation and Development (OECD) group.
The OECD’s Financial Action Task Force has given Turkey until Feb. 22 to adopt the legislation. Turkey has been under pressure to pass the measure over the past six years.
Justice Minister Sadullah Ergin said last month that suspension would cause serious difficulties for Turkish trade and the economy. Such a move would rank it alongside Iran and North Korea.
“It could cause problems in money transfers; foreign countries may increase scrutiny for transfers from Turkey and delay the process,” Ergin said. Turkey may also face hurdles with money transfers and loans that could increase interest rates and inflation, he said, devastating the $800 billion economy.
Turkey accuses European states of turning a blind eye to requests to crack down on Turkish militants, including the Kurdistan Workers’ Party or PKK, and failing to extradite suspects.
Government lawmakers like Hakki Koylu, deputy chairman of the parliament’s Justice Commission, say that Turkey’s definition of terrorism differs from that of Western countries.
Responding to international criticism that the draft law is inadequate, Koylu said on Jan. 24 that the government would try to defend the law. Turkey may not meet demands from other countries to freeze terrorist assets unless they reciprocate, Ergin said on Jan. 24.
Turkey’s insistence on reciprocity contradicts international standards, said Jean-Charles Brisard, a terrorism financing expert with JCB Consulting International based in Switzerland yesterday.
“The international sanctions mechanism is unconditional or it simply wouldn’t work,” said Brisard in emailed comments. “The Turkish government’s behavior is therefore a risk for the coherence of the global fight against terrorism financing.”
“Turkey can not afford to ignore the recommendations, and it looks like they will pass a resolution before the deadline,” said Fadi Hakura, an analyst at the Chatham House think tank in London on Feb. 4. “It will be enough for the time being, but I don’t think the task force will cease pressuring Turkey.”
© Copyright 2013 Bloomberg News. All rights reserved.