The Central Bank of Türkiye (TCMB) has suspended the licence of fintech company Papel Elektronik Money. The decision is linked to allegations that the company facilitated financial transactions related to illegal gambling and helped conceal funds obtained through illicit gambling activities.
The suspension was disclosed in the official government gazette published on 23 September. In addition to suspending Papel Elektronik’s licence, the regulator halted the company’s electronic wallet and money transfer services.
According to the document, TCMB began reviewing Papel’s licence as early as January and ordered the company to be placed under the management of the Savings Deposit Insurance Fund of Türkiye (TMSF).
Papel is under investigation over allegations that its payment infrastructure was used to transfer funds linked to illegal betting, fraud and unauthorised foreign exchange transactions. The investigation is based on findings from the Central Bank of Türkiye and the Financial Crimes Investigation Board (MASAK).
According to investigators, proceeds from illegal activities entered the financial system through electronic money services and were subsequently moved through accounts held by other companies and crypto assets. However, these findings remain part of an ongoing investigation and have not been conclusively established.
Papel is suspected of processing customer transactions worth approximately ₺1.5 billion (around $35.2 million) linked to unlicensed gambling operators. Investigators are also examining the source of ₺827 million (approximately $19.4 million) reportedly injected into the company and linked to Papel Chairman Seyhan İbrahim Yıldırım. The transaction volume should not be interpreted as an established amount of funds obtained or laundered illegally.
The Papel investigation is another example of the Turkish authorities’ increased scrutiny of the fintech sector as part of MASAK’s efforts to identify payment mechanisms used by illegal gambling networks. Regulators are increasingly examining accounts, intermediaries and digital platforms that unlicensed operators may use to collect bets and transfer proceeds.
The largest case of this kind involved an investigation into Papara. Its founder and then-CEO, Ahmed Faruk Karslı, was arrested in May 2025 as part of an investigation into illegal betting transactions and money laundering. According to prosecutors, gambling networks used Papara accounts to transfer funds to bank accounts and crypto wallets. The company was subsequently placed under TMSF management.
Turkey Steps Up Its Fight Against Illegal Gambling
Tighter scrutiny of payment companies is part of Türkiye’s broader government strategy to combat illegal gambling.
At a coordination meeting in Ankara in August, Turkish Vice President Cevdet Yılmaz said authorities had expanded the scope of their enforcement efforts. The focus now extends beyond illegal websites and accounts to payment infrastructure and the organised groups behind illicit operations. According to Yılmaz, authorities are collecting additional information and examining rented accounts, illegal payment systems and mechanisms used to transfer proceeds of crime.
The vice president said illegal betting poses risks to Türkiye’s financial system and can also have an impact on families and young people. MASAK monitors implementation of the anti-illegal gambling action plan every two months, while coordination meetings chaired by the vice president are held every four months.
The suspension of Papel’s licence represents another concrete step in implementing this policy. At the same time, the case raises questions about how legitimate customers of payment services can protect their interests if their accounts or funds are affected by criminal investigations.
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