The Central Bank of Türkiye (TCMB) has suspended Papel Elektronik Money’s operating licence after allegations that the fintech facilitated financial transactions for illegal gambling and helped conceal funds linked to illicit betting.
The suspension, published in the ministerial gazette on 23 September, covers Papel Elektronik’s online wallet and money transfer services. The decision follows a review of the company’s licence launched by TCMB in January, when Papel was also placed under the trusteeship of the Savings Deposit Insurance Fund (TMSF).
Investigation into payment flows
Papel is under investigation over claims that its payment infrastructure was used to move proceeds from illegal betting, fraud and unauthorised foreign exchange activity. The case is based on reports prepared by TCMB and Turkey’s Financial Crimes Investigation Board MASAK, also known as the Financial Crimes Investigation Authority.
Investigators allege that proceeds entered the financial system through electronic money services before being transferred via other companies and crypto assets. Those claims remain allegations under investigation.
The company is accused of processing ₺1.5bn in transactions for consumers using unlicensed gambling operators. That amount is estimated at approximately €25m to €30m. Investigators are also examining a reported ₺827m cash injection linked to Papel chairman Seyhan İbrahim Yıldırım, valued at €12m. The transaction figure does not establish that the full amount represented laundered funds.
The case places another Turkish fintech under MASAK scrutiny as authorities examine the payment routes used by illegal gambling networks. The focus has increasingly extended to accounts, intermediaries and digital systems used by unlicensed operators to collect stakes and transfer proceeds.
Payment companies in focus
The largest recent case involved Papara. Its founder and then chief executive, Ahmed Faruk Karslı, was arrested in May 2025 during an investigation into illegal betting transactions and money laundering. Prosecutors alleged that betting networks used Papara accounts to transfer funds to bank accounts and crypto wallets. Papara was subsequently placed under TMSF management.
The action against Papel forms part of the government’s wider campaign against illegal gambling. At a coordination meeting in Ankara in August, Vice President Cevdet Yılmaz said enforcement had expanded from websites and accounts to payment infrastructure and the organised groups behind it.
Yılmaz said authorities were gathering more data and examining rented accounts, illegal payment systems and methods used to transfer criminal proceeds. He described illegal betting as a threat to Turkey’s financial system, families and young people.
MASAK monitors the action plan every two months, while coordination meetings chaired by the vice president are held every four months. The suspension also raises the question of how legitimate customers affected by criminal investigations will regain access to their funds.
