Turkey Implements Sweeping Financial Reforms to Combat Illegal Betting and Organized Crime

New Financial Transfer Rules Take Effect

As of January 1, 2026, Turkey has implemented a comprehensive set of new financial transfer rules designed to bolster its efforts against illegal betting, money laundering, and organized crime. These regulations, overseen by Turkey's Financial Crimes Investigation Board (MASAK), introduce stricter oversight for financial transactions across the country's banking and payment systems.

Under the new system, money transfers amounting to TRY 200,000 (approximately £3,431) or more are now subject to enhanced checks. Customers are required to provide a clear and specific purpose for these transactions, with generic explanations no longer being accepted. For even larger transfers exceeding TRY 20 million (approximately £343,100), banks are mandated to verify the source of funds and collect supporting documentation, such as property deeds.

Financial institutions, including banks and payment providers, are also now obligated to respond to official requests for customer data within a strict timeframe of ten days. The new compliance framework extends to mobile payment applications and digital wallet providers, ensuring a unified approach to financial oversight.

Expanded Legal Powers and Enforcement

The financial reforms are being implemented in conjunction with significant legal amendments, notably the 11th Judicial Package, which received approval from the Ministry of Justice on December 15. This legislative overhaul grants prosecutors expanded powers to seize funds, freeze assets, and pursue cases directly linked to illegal betting operations.

Justice Minister Yılmaz Tunç has stated that these changes are crucial for 'closing enforcement gaps' that previously allowed illegal betting networks to operate 'unpunished and at scale'. He emphasized that 'Illegal betting and online gambling are not only crimes, but also channels that finance organized crime and cause serious social harm.' Amendments to Turkey's Penal Code introduce tougher prison sentences and higher financial penalties for individuals and groups involved in such illicit activities. Furthermore, participants and intermediaries now face increased fines, broader asset confiscation, and the temporary freezing of bank or digital payment accounts for up to 48 hours during investigations.

Government's 'Zero-Tolerance' Stance

The crackdown reflects a 'zero-tolerance' policy championed by President Recep Tayyip Erdoğan, who has backed an 'Action Plan' calling for all state institutions to cooperate in 'eradicating illicit gambling'. Treasury and Finance Minister Mehmet Şimşek has also underscored the government's commitment, warning that 'administrative, legal, and financial sanctions will be imposed on non-compliant platforms.'

The government views illegal betting as a significant threat, not only due to its role in financing organized crime but also because of substantial tax revenue losses, estimated to be in the billions of Turkish Lira. MASAK reports indicate that approximately 95% of illegal betting transactions occur online, with organizers frequently utilizing an average of 3,000 different bank accounts monthly, often belonging to vulnerable individuals such as students or unemployed people, to obscure money trails.

Ongoing Efforts and International Cooperation

These new measures build upon previous enforcement actions. In 2024, Turkish authorities successfully shut down 233,000 illegal betting and gambling websites, marking a 38% increase from the 168,030 sites blocked in 2023. A significant portion of these blocked sites originated from the United States (56%), Armenia (17%), and the Netherlands (6%). In 2023, Turkey blocked $19.2 million in illegal betting transactions.

Looking ahead, a 2025-2026 action plan is in place to further combat illegal betting and gambling in virtual environments. This includes plans for increased international cooperation, with a focus on jurisdictions like Cyprus, Georgia, North Macedonia, and Armenia, which are alleged to host operators targeting Turkish consumers. Major Turkish banks, including Ziraat Bankası, Türkiye İş, and Garanti BBVA, have already begun issuing warnings to customers regarding the risks associated with illegal gambling-linked activities. Additionally, new restrictions are being introduced on cryptocurrency transactions, including mandatory waiting periods for withdrawals and daily/monthly limits on stablecoin transfers, to further curb money laundering from illegal betting and fraud.