Turkey's Central Bank Cancels Parolapara's Operating License

Turkey's Central Bank (TCMB) has officially revoked the operating license of Parolapara Elektronik Para ve Ödeme Hizmetleri A.Ş. The decision, published in the Official Gazette, stems from allegations that the company was used to launder money from illegal gambling activities.

The license, initially granted on July 28, 2022, was canceled under specific articles of Law No. 6493 concerning payment and securities settlement systems, payment services, and electronic money institutions. This action was taken after an investigation, initiated by the Anadolu Chief Public Prosecutor's Office, uncovered significant issues within Parolapara.

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The company's license to operate as an electronic money institution, granted on July 28, 2022, has been canceled.

A report prepared by the TCMB highlighted systematic deficiencies, including violations of minimum equity requirements, non-compliance with reporting obligations to banks, and failures in internal control and risk management processes. The company also lacked adequate Know Your Customer (KYC) systems and risk transaction monitoring.

Prior to the license cancellation, authorities conducted an operation across three provinces, targeting illegal betting and money laundering. The investigation identified 26 suspects, leading to the detention of 24 individuals. Legal proceedings are ongoing for the remaining two fugitives.

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Systematic deficiencies were detected in many areas of the company, particularly in the identity verification system (KYC) and risk transaction monitoring.