Turkish Fintech Linked to SadaPay Probed for Laundering

Turkish authorities have detained 13 individuals in connection with an ongoing investigation into the fintech company Papara. The action, based on allegations of money laundering and the formation of a criminal organization, was confirmed by Interior Minister Ali Yerlikaya.

According to Yerlikaya, the investigation revealed that Papara, a prominent digital finance platform with 21 million users, was allegedly facilitating the transfer of illegal betting proceeds through user accounts. Over 26,000 accounts were reportedly involved in transactions amounting to $330 million.

Among those detained is the company’s founder and chairman, Ahmet Faruk Karsli, as reported by Turkish broadcaster TRTHaber. Papara, which began operations in 2015 and received its electronic money license in 2016, has grown rapidly within Turkey’s fintech sector.

It provides services such as online money transfers, foreign exchange transactions, and bill payments. Notably, in 2023, Papara acquired Pakistan-based Electronic Money Institution (EMI) SadaPay. At the time, SadaPay expressed optimism about the acquisition, highlighting Papara’s global reach and financial strength as key advantages. As of now, Papara has not issued a public response to the allegations or the ongoing investigation.