The crime economy in Turkey

The crime economy encompasses the flow of goods and money caused by activities considered economic crimes. Economic crimes are acts that disrupt the general economic order. The crime economy is the attempt to obtain goods and services—whose production, distribution, and marketing are prohibited or under supervision for various reasons—by engaging in activities contrary to economic ethics and traditions, even when market supply and demand exist. 

The fundamental characteristic of this economy is that its entire field of activity is prohibited by law. Another feature of the crime economy is that the priority in combating it lies with security forces. Determining and taxing the resulting income is a subsequent stage. 

Estimating the size of the crime economy is more difficult than that of the informal economy. In this sense, studies are conducted based on macroeconomic data or micro-based estimates related to specific crimes. A reliable estimation of the size of the crime economy is, by its nature, impossible. However, if estimation were possible, it would be possible for units fighting crime to use their resources effectively with the right policies. 

According to the findings of the General Directorate of Security, the most common methods of money laundering in Turkey are: 

• Establishing shell companies

• Using fake and inflated invoices

• Using casinos and betting establishments

• Making cash purchases

• Smuggling money abroad

• Converting money into valuable documents

• Establishing tourism companies

• Investing in real estate

• Engaging in trade (especially in activities where it is difficult to control accounts item by item, such as restaurants and gas stations) 

There are two studies available in this context regarding Turkey. The first is the study titled 'The Balance Sheet of the Crime Economy in Turkey' conducted by the Istanbul Chamber of Certified Public Accountants in 2011. According to the research, the turnover generated from illegal activities in Turkey across 27 items in 2010 was at least 8 billion TL, and the net profit obtained was around 3 billion 250 million liras. 

It is observed that prostitution and heroin generate the most monetary activity in Turkey's crime economy. In addition, cannabis and human trafficking follow these two areas. When we look at the nature of the crimes collectively, it is seen that drug trafficking is the largest component of the crime economy.

The highest income per unit is generated from organized crime, while the lowest income is generated from fuel. In terms of units, the highest transaction volume is seen in fuel, while the lowest transaction volume is seen in organized crime.

 Although there are certain obstacles for criminal networks as a result of the fight against the crime economy, activities continue to increase.

It is observed that the most success in the fight against the crime economy in Turkey has been achieved in cigarette smuggling.

When looking at the crime economy in Turkey, it is seen that the most frequent crime committed is burglary, but the highest turnover is in credit card and bank fraud.

It has been estimated that the 20 countries with the highest sources of dirty money in the world have laundered approximately 3.147 billion dollars in Turkey. In the study conducted by FATF, it was determined that 70% of dirty money sources were successfully laundered, while in the study conducted by the IMF, it was determined that the money seized or thought to be laundered constitutes 10-20% of the actual source of dirty money. From this perspective, it is thought that the amount of dirty money estimated to be laundered in Turkey is of a larger scale.