Istanbul, May 27, 2025 — Papara, one of Turkey’s fastest-growing and most widely used fintech companies, is under official investigation by Turkish authorities over allegations of money laundering. The probe, led by the Financial Crimes Investigation Board (MASAK), has resulted in the detention of 13 individuals reportedly linked to questionable transactions processed through the platform.
Founded in 2016, Papara has become a leading name in the digital finance space, offering seamless financial services such as peer-to-peer payments, prepaid cards, and digital wallets to over 15 million users. Its rise has been hailed as a fintech success story in Turkey, but the ongoing investigation now places its reputation and future at risk.
Authorities have not released the names of those detained but stated that the investigation centers on suspicious activity that may indicate the laundering of proceeds from criminal enterprises. Investigators are examining whether internal control failures at Papara may have allowed illicit actors to move large sums of money undetected.
In a brief public statement, Papara acknowledged the investigation and confirmed its cooperation with regulators. The company asserted its commitment to anti-money laundering compliance, stating that it follows all national and international financial regulations and maintains robust internal risk frameworks.
The timing of the investigation is particularly significant, as Turkey faces growing international pressure to strengthen its AML regime. The country was previously added to the Financial Action Task Force (FATF) grey list in 2021 due to deficiencies in combating financial crime. Cases like Papara’s are seen as pivotal to demonstrating the effectiveness of Turkey’s regulatory and enforcement systems.
Industry analysts suggest that this case could set a precedent for how fintech firms are regulated going forward. A confirmed violation could lead to stricter rules on customer due diligence, transaction monitoring, and reporting obligations across the sector.
For now, all eyes are on the outcome of the probe, which could reshape not only Papara’s operations but also the compliance expectations for fintech firms across the region.
