Turkey’s central bank suspends Papel Elektronik Money over illegal gambling probe

Turkey’s central bank has suspended the operating licence of Papel Elektronik Money, shutting down its e-wallet and money transfer services after allegations that the company handled payments for illegal gambling operators and concealed illicit funds. For PSPs, this is the part where “payment infrastructure” stops being abstract and starts becoming the target.

1. On 23 September, the decision was published in the government gazette, and the Central Bank of the Republic of Turkey (TCMB) halted Papel’s operations. The company had already been under review since January, and the case has now been transferred to the Savings Deposit Insurance Fund (TMSF).
2. According to the investigation, which relies on materials from TCMB and Turkey’s Financial Crimes Investigation Board (MASAK), Papel’s infrastructure was used to move funds linked to illegal betting, fraud, and unauthorised forex trading. That is exactly the sort of fact pattern regulators tend to treat as a payment rails problem, not just a merchant problem.
3. The company is accused of processing transactions worth approximately 1.5 billion lira (€25–30 million) with customers of illegal bookmakers. Investigators are also examining the source of 827 million lira (€12 million) connected to Papel chairman Seyhan İbrahim Yıldırım. The figures are listed as subjects of the investigation, not as confirmed laundering volumes.
4. This is not the first time Turkey has gone after the payments layer in a gambling case. In May 2025, Papara founder and then-chief executive Ahmet Faruk Karslı was arrested on similar allegations — using accounts to route betting funds into banks and crypto wallets — and Papara also came under TMSF administration.

The practical takeaway for high-risk PSPs is straightforward: Turkey’s enforcement focus has moved from websites and bank accounts to the payment infrastructure and the groups running it. That means rented accounts, informal payment systems, and fund-routing chains are now part of the compliance problem, not just the backend plumbing.