Istanbul Police Busts Money-Laundering Banking Network Linked to Libya, Russia, and Central Asia

Turkish police has dismantled a large underground banking network involving unlicensed companies engaged in money-laundering activities worth more than one billion dollars, with ties to networks in Libya, North Africa, Russia, and Central Asia, The Caspian Post informs via Libiya Observer.

According to Türkiye Today newspaper on Saturday, Istanbul Police carried out a major operation last month targeting illegal money-laundering activities in the Laleli area of the city. These activities were estimated at 50 billion Turkish lira (equivalent to $1.2 billion).

Laleli is well known for textile trading, but its real activity runs through an informal banking network linking Turkey to Libya, Russia, and Central Asia, where both licensed and unlicensed money-management companies facilitated payments for exporters who preferred to avoid official banking channels.

The investigation, Türkiye Today says - has revealed that one of the involved companies, operating under the name Laleli Altın Ticaret, recorded more than $155 million in incoming funds and $107 million in point-of-sale (POS) transactions; all linked to companies in Libya.

Investigators also found 472 forged passports connected to the company, raising concerns about the international scope of the money-laundering network.

According to the inquiry, POS machines were shipped to Libya, where card transactions took place locally. However, the payments were recorded in Turkey as if they were happening inside the country, not in Libya.

Witnesses said foreign clients received commissions of up to 2% for each money transfer. A manager at a private bank in Istanbul also played a key role in facilitating the money transfers.