Turkey as Financial Transit Hub
Gateway between MENA, Russia, and Western financial systems
Why Turkey Works as Transit Hub
Connected
Accept Transfers
Treaty Country
Citizenship via RE
Turkey's Unique Position
Turkey bridges East and West, maintaining banking relationships with both sanctioned countries and Western financial systems:
Geographic Advantage
- NATO member country
- Borders Europe and Middle East
- Major tourism hub
- Strong transport links
Financial Connectivity
- SWIFT connected banks
- Accepts RUB from Russia
- MIR card acceptance (some)
- USD/EUR transfers to West
Regulatory Position
- Not joined Western sanctions
- Maintains neutral stance
- FATF grey list (2021-2023)
- Enhanced AML requirements
Who Uses Turkey for Transit
Primary User Groups
Russian Nationals
- SWIFT-blocked bank workaround
- RUB to USD conversion
- Path to Western banking
- Business relocation
MENA Investors
- Cultural/language familiarity
- Time zone convenience
- Islamic banking options
- Less scrutiny than direct
CIS Country Nationals
- Kazakhstan, Azerbaijan, Turkmenistan
- Historic ties with Turkey
- Turkic language commonality
- Easy visa/residence
Why Not Go Directly to USA
| Challenge | Direct to USA | Via Turkey |
|---|---|---|
| Bank account opening | Very difficult | Easier (then transfer) |
| Wire transfers | May be blocked | SWIFT available |
| Compliance review | Extensive for high-risk countries | Less automatic flags |
| Residence/citizenship | Difficult to obtain | Available via investment |
Turkish Banking
Major Turkish Banks
| Bank | International Transfers | Notes |
|---|---|---|
| Ziraat Bankasi | Yes (SWIFT) | State-owned, accepts RUB |
| Is Bank | Yes (SWIFT) | Largest private bank |
| Garanti BBVA | Yes (SWIFT) | Spanish parent, more cautious |
| Yapi Kredi | Yes (SWIFT) | Good for international |
| Denizbank | Yes (SWIFT) | UAE ownership |
Opening Bank Account
Requirements
- Passport (with Turkish translation)
- Turkish tax ID (vergi numarasi)
- Proof of address (utility bill)
- Source of funds documentation
Process
- Get tax ID at tax office (same day)
- Visit bank branch in person
- KYC interview and documentation
- Account active in 1-3 days
International Transfers
Inbound Transfers to Turkey
| Source | Method | Status |
|---|---|---|
| Russia (RUB) | Bank transfer | Works (certain banks) |
| Russia (MIR card) | Card payment/ATM | Limited acceptance |
| UAE | SWIFT | Full functionality |
| Kazakhstan | SWIFT | Full functionality |
| EU/US | SWIFT | Full functionality |
Outbound Transfers to USA
From Turkish bank to US bank/broker:
What Works
- SWIFT USD transfers
- To US bank accounts
- To US brokerage accounts
- Standard processing time
Potential Issues
- Correspondent bank delays
- Enhanced due diligence requests
- Large amounts may be held
- Document source of funds
Compliance Considerations
Heightened Risk Profile
Turkey's position creates compliance challenges:
FATF Grey List History
- Was on grey list 2021-2023
- Improved AML framework
- Still monitored closely
- Some banks remain cautious
Sanctions Evasion Concerns
- US Treasury monitors Turkey
- Known transit route
- Banks face secondary sanctions risk
- Enhanced scrutiny on Russian flows
Best Practices
Documentation
- Complete source of funds proof
- Business purpose explanation
- Tax records (all countries)
- Investment plans
Genuine Presence
- Turkish residence permit
- Real address in Turkey
- Business or employment
- Not just pass-through
For detailed sanctions compliance guidance, see our OFAC Sanctions Screening Guide.
Turkish Residence Options
Residence Permit Types
| Type | Requirements | Duration |
|---|---|---|
| Short-term residence | Rental contract, insurance | 1-2 years, renewable |
| Real estate residence | Property purchase (any value) | 2 years, renewable |
| Investment residence | $500K+ investment | Long-term |
| Work permit | Job offer from Turkish company | 1 year, renewable |
Citizenship by Investment
Turkey offers citizenship through investment:
Real Estate Path
- $400,000+ property purchase
- Hold for 3 years minimum
- Family included
- Processing: 3-6 months
Capital Investment
- $500,000 fixed capital
- $500,000 bank deposit (3 years)
- $500,000 government bonds
- Create 50+ jobs
Turkish Real Estate
Investment Considerations
Popular Areas
- Istanbul (business hub)
- Antalya (tourism/beach)
- Bodrum (luxury market)
- Alanya (Russian community)
Price Ranges
- Istanbul apartment: $150K-$500K+
- Antalya apartment: $100K-$300K
- Citizenship threshold: $400K
- Prices in USD (indexed)
Risks and Considerations
Currency Risk
- TRY has depreciated significantly
- Property often priced in USD
- Rental income in TRY
- Consider currency hedging
Market Risks
- Oversupply in some areas
- Developer quality varies
- Title verification essential
- Use trusted lawyer
Path to US Investment
Turkey to USA Investment Flow
Typical path for using Turkey as transit to US investment:
- Establish Turkish residence (rental or property)
- Open Turkish bank account with proper KYC
- Transfer funds to Turkey (from origin country)
- Establish track record in Turkey (6+ months recommended)
- Open US brokerage account (Interactive Brokers accepts Turkey)
- SWIFT transfer from Turkey to US broker
- Maintain documentation of entire flow
E-2 Visa via Turkish Citizenship
Turkey is an E-2 treaty country. This provides a path for nationals of non-treaty countries:
The Path
- Obtain Turkish citizenship ($400K+ property)
- Apply for E-2 as Turkish national
- Invest in US business ($100K+)
- Live and work in USA
Timeline
- Turkish citizenship: 3-6 months
- E-2 visa application: 2-4 months
- Total: 6-12 months
- Faster than most alternatives
Frequently Asked Questions
Is using Turkey for transit legal?
Yes, if done properly. Having genuine presence in Turkey, opening compliant bank accounts, and maintaining proper documentation is legal. What is illegal is using Turkey solely to evade sanctions or circumvent reporting requirements. The key is genuine economic activity, not shell arrangements.
Will US banks accept transfers from Turkey?
Generally yes, but with enhanced scrutiny. Turkey is not sanctioned. However, compliance departments know Turkey is used as a transit hub. Expect questions about source of funds, purpose of transfer, and your connection to Turkey. Proper documentation makes this manageable.
How long should I stay in Turkey before transferring?
There is no legal minimum, but practical advice: establish presence for at least 3-6 months before large transfers. This creates a genuine paper trail. Arriving, depositing funds, and immediately transferring out looks like transit/evasion and may trigger blocks.
What about Turkish citizenship for E-2?
This is a legitimate strategy. Purchase $400K+ property, obtain Turkish citizenship (3-6 months), then apply for E-2 visa as a Turkish national. Total investment: ~$500K ($400K property + $100K US business). Total time: 6-12 months. Faster and cheaper than EB-5.
Is Turkey better than Kazakhstan/Armenia for transit?
Depends on your situation. Kazakhstan is easier for Russians (language, IIN process). Armenia has simpler banking for small amounts. Turkey offers citizenship path and E-2 eligibility but has more compliance scrutiny. Choose based on your specific needs and long-term goals.