The international crime watchdog Financial Action Task Force (FATF) removed Turkey from its "grey list" of countries that require special scrutiny on Friday, in a boost to the country's economic turnaround plan, Reuters reported.
Turkey was downgraded to the "grey list" in 2021 on concerns about money laundering and terrorist financing. The latest move came after an FATF team recently held meetings with Turkish authorities to assess progress in addressing those worries.
Turkey has made "significant progress" in improving its regime of anti-money laundering and combating the financing of terrorism, the Paris-based body said in a statement after its plenary meeting in Singapore.
Turkish officials welcomed the move, which is seen as improving its international standing and potentially drawing in fresh investment.
There was little market reaction to the move, which was widely expected, with the lira firming slightly to 32.8845 against the dollar. Istanbul's main share index was 0.5% higher.
"The good news around Turkey, and the reforms from (Finance Minister Mehmet) Simsek just
Turkey's FDI inflows were $1.5 billion in the first quarter, down 52% from the quarterly average in the three years previous, Turkey's International Investors Association said.
There are some two dozen nations that are on the "grey list" and considered risky by the FATF, a body that groups countries from the United States to China to tackle financial crime. In February, it removed the United Arab Emirates from the list.
The Watchdog has remained Iran on its blacklist.