Ankara, Turkey – Turkish police have dismantled a massive, unlicensed money laundering network operating in Istanbul’s historic Laleli district. The network was valued at over $1 billion (approximately 50 billion Turkish lira). Investigations revealed that the network had links to financial entities and networks in Libya, North Africa, Russia, and Central Asia.
Istanbul police carried out the large-scale operation last month, according to the newspaper “Turkey Today.” The operation targeted companies that facilitate money laundering activities in the Laleli district, known for its textile shops.
Money transfers to Libya via shell companies
The investigation revealed intriguing details about how this informal banking network operated. Licensed and unlicensed money management companies facilitated payments for exporters who preferred to avoid formal banking channels.
One of the companies implicated is Laleli Altin Tikarti. It recorded over $155 million in incoming funds and $107 million in point-of-sale (POS) transactions. All of these transactions are linked to companies in Libya.
Investigators also found 472 forged passports linked to the company, reinforcing concerns about the international dimensions of the crime.
Manipulating points of sale to launder money
The investigations revealed the mechanism used in money laundering linked to Libya. POS terminals were shipped to Libya, where card transactions were processed locally.
These transactions were also recorded in Türkiye as if they took place within Turkish territory and not in Libya. This facilitated money laundering.
Witnesses stated that foreign clients received a commission of up to 2% for each transaction. The manager of a private bank in Istanbul also played a key role in facilitating the illicit money transfers.
This process highlights Turkey’s pivotal role as a transit hub for informal financial transfers, particularly with countries experiencing financial instability or subject to international oversight.
