Turkish authorities are presently investigating a Turkish financial technology company that acquired Pakistan’s leading fintech, SadaPay, in May 2024. The company is suspected of involvement in money laundering, illegal betting, and other financial crimes.
Ahmed Faruk Karslı, the company’s founder and CEO, has been apprehended along with 12 other individuals as part of a wide-reaching law enforcement operation.
Karslı was arrested during coordinated early morning raids across Istanbul, as confirmed by the Istanbul Chief Public Prosecutor’s Office, according to a report by Turkiyetoday.com.
Authorities have seized a variety of assets believed to be linked to the suspected criminal organization. These include eight businesses under PPR Holding Inc., multiple properties, luxury vehicles, vessels, and cryptocurrency wallets.
Turkish Regulators Uncover Complex Money Laundering Network
The ongoing investigation is backed by evidence from the Central Bank of the Republic of Turkey (CBRT), the Financial Crimes Investigation Board (MASAK), and other regulatory bodies. Authorities allege that Papara’s platform was used to facilitate unlawful financial transactions.
Investigators found that 102 of the 26,012 user accounts created via Papara’s technology were directly involved in large-scale illicit betting and fund transfers.
These activities formed part of a sophisticated money laundering operation, routing funds through 274 separate bank accounts and eventually to 16 cryptocurrency wallets.
$330 Million in Illegal Transactions Identified
A total of 13 individuals have been taken into custody. Assets belonging to the companies and suspects implicated in the investigation have been frozen, according to Turkish Interior Minister Ali Yerlikaya.
The financial crimes unit estimates that the illicit transactions exceeded 12.9 billion Turkish lira—approximately $330 million.
SadaPay’s Link Raises Questions in Pakistan
One year prior, Papara acquired SadaPay, a licensed Electronic Money Institution (EMI) regulated by the State Bank of Pakistan.
Based in Pakistan, SadaPay reportedly has over 21 million users and a valuation exceeding $2 billion.
So far, Pakistani authorities have not made any statements regarding a possible link between the Turkish investigation and SadaPay’s local operations.
Call for Tighter Oversight by Pakistani Regulators
Industry experts are urging Pakistani regulators to carefully evaluate the situation unfolding in Turkey. Muhammad Yasir, a fintech analyst, has called on the State Bank of Pakistan (SBP) to closely monitor fintech companies operating in Pakistan that are backed by foreign sponsors.
Yasir stressed the need for ongoing due diligence and stronger regulatory oversight, stating, “The reputational repercussions on SadaPay are unavoidable, despite the fact that the allegations are related to activities in Turkey.”
He further emphasized that the SBP must reassess its current EMI framework and adopt a proactive strategy to mitigate cross-border financial risks.
Strengthening Pakistan’s Financial Regulatory Framework
Yasir added that Pakistan’s regulatory framework should be continuously updated to preserve the integrity of the national financial system and protect consumers. As fintech evolves and cyber-financial crimes grow more complex, timely updates to regulations are essential.
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