Minister Şimşek Warns Citizens Over “Proxy Accounts”: ₺5 Billion in Illegal Betting Funds Blocked

Turkey’s Minister of Treasury and Finance, Mehmet Şimşek, has issued a public warning to citizens about the growing use of so-called “proxy accounts” in illegal betting and gambling networks. According to official financial crime investigations carried out in 2025, authorities prevented approximately ₺5 billion (around several hundred million USD equivalent) in suspected illegal betting proceeds from entering and circulating within the formal financial system.

The warning highlights not only the scale of Turkey’s illegal betting economy, but also the increasingly sophisticated financial methods used to move and disguise these funds.

Financial Intelligence Focus: Targeting Both Money Flow And Infrastructure

Turkey’s Financial Crimes Investigation Board (MASAK) concentrated its efforts on two core areas in 2025:

1. Identifying individuals and organized groups generating illegal betting revenue.

2. Disrupting the financial infrastructure used to move and disguise these funds.

Investigations revealed that illegal betting operations are not limited to websites or operators. The real backbone of the system lies in payment channels that allow funds to be collected, fragmented, transferred, and laundered through various financial layers.

How ₺5 Billion Was Stopped

Authorities reported that illegal betting proceeds were being routed through multiple channels in order to avoid detection. These included:

• Traditional banking transfers

• Foreign currency transactions

• Crypto asset transfers

Through data analysis, transaction monitoring, and coordinated enforcement measures, financial authorities were able to intercept and block approximately ₺5 billion in suspected illicit funds before they could be fully integrated into the financial system.

Payment Institutions And Crypto Platforms Under Scrutiny

Investigations also extended to certain payment and electronic money institutions believed to have facilitated the rapid collection or transfer of illegal betting funds.

As a result:

• Some institutions faced administrative actions, including license revocations.

• Certain entities were subject to asset seizure orders.

• Measures were also applied within the crypto asset sector where platforms were allegedly used to route betting revenues.

The approach reflects a broader strategy: cut off the financial oxygen that keeps illegal betting networks alive.

Virtual POS Systems And Crypto Transfers: High-Risk Channels

Illegal betting networks reportedly relied heavily on:

• Virtual POS systems to collect fragmented payments quickly

• Crypto transfer chains to complicate traceability

In response, regulators strengthened oversight mechanisms around high-risk transaction flows and enhanced monitoring in the crypto ecosystem to prevent abuse.

More Than 500 Financial Intelligence Reports Filed

Beyond account freezes and operational measures, authorities prepared and submitted more than 500 intelligence reports to law enforcement and judicial bodies. These reports aim to map financial networks, identify linked individuals or shell companies, and strengthen the prosecutorial process with financial evidence.

What Is A “Proxy Account” And Why Are Citizens At Risk?

At the center of Minister Şimşek’s warning is the practice known as a “proxy account.”

In this model, illegal betting organizers use bank accounts, electronic money accounts, or crypto wallets registered under third parties rather than under their own names. Citizens may be approached with offers such as:

• “We’ll pay you commission.”

• “We only need temporary access.”

• “It’s just for simple money transfers.”

However, providing access to a personal account can expose individuals to serious legal consequences, as they may be considered participants in money laundering activities.

In more advanced schemes, organizers reportedly obtain power of attorney to establish limited liability companies, using corporate accounts as fronts to disguise betting revenue as legitimate business activity.

Five Key Warnings For Citizens

• Never share your bank account, IBAN, card details, or crypto wallet access with strangers.

• Reject commission-based offers to “rent” your account.

• Verify whether any accounts or companies have been opened in your name.

• Question unexplained incoming or outgoing transfers.

• Remember that even a “one-time” transaction can evolve into a repeated chain of liability.

The Bigger Question: If The Illegal Betting Economy Is This Large, Why Not Regulate It?

The scale of blocked funds inevitably raises a broader policy debate: If illegal betting generates such significant financial volume, why is there no visible move toward a broader regulated licensing framework?

Supporters of a controlled and licensed market argue that three structural benefits could emerge from a regulated model.

Keeping The Money Inside The System

Illegal betting revenues often circulate through informal or offshore channels. A licensed and regulated framework could ensure that betting-related funds remain within the formal, traceable financial system, improving transparency and reducing money laundering risks.

Market Competition Could Undermine Illegal Operators

Illegal operators thrive on accessibility and user demand. A regulated market offering secure, licensed alternatives could draw users away from illicit platforms. In economic terms, reducing demand for illegal providers may prove more effective than enforcement alone.

Addiction Risk Exists Today — But It Cannot Be Tracked

One of the strongest arguments against liberalization is gambling addiction risk. However, addiction already exists within the illegal ecosystem — and currently, those users cannot be properly identified or protected.

In a regulated environment, mechanisms such as:

• Verified identity systems

• Spending limits

• Behavioral monitoring

• Early intervention models

could make it significantly easier to identify high-risk individuals and implement protective measures.

Taxation And Licensing Could Address Structural Gaps — Yet No Public Plan Exists

A well-designed licensing and taxation model could reduce informal financial flows, increase state revenue, and improve oversight capacity in the short term. It could also shrink the space for shell accounts and proxy structures by bringing activity into a transparent framework.

For now, however, public policy appears focused primarily on enforcement, financial restrictions, and operational crackdowns. There is no clearly articulated roadmap toward a broader regulated betting framework.

As Turkey intensifies its fight against illegal betting networks, the debate over whether enforcement alone is sufficient — or whether regulation could offer a complementary solution — is likely to grow.