Turkish Central Bank revokes Papara’s operating license over illegal betting probe

The Central Bank of Türkiye (CBRT) has revoked the operating license of Papara Electronic Money Inc., following a decision by the Banking Regulation and Supervision Agency (BDDK).

The license, originally granted in April 2016, was annulled under Law No. 6493 on Payment and Electronic Money Institutions, Caliber.Az reports via Turkish media.

Papara, an electronic wallet service with an attached debit card, has been under external administration since May, when Turkish police arrested its owner, Ahmet Faruk Karslı, along with 13 others on suspicion of money laundering through illegal betting.

The company’s assets worth 5 billion liras ($128 million) were confiscated. The revocation coincides with the completion of a major investigation by the Istanbul Chief Public Prosecutor’s Office into allegations that Papara facilitated illegal betting transactions.

The indictment lists 25 individuals—including Karslı—and 21 companies as suspects, with the Sports Toto Organisation identified as the victim.

According to the indictment, more than 26,000 Papara accounts were used for illegal betting between 2021 and 2023, handling around 12 billion liras ($308 million) through 102 betting sites.

Funds were allegedly funnelled through 274 bank accounts and five cryptocurrency wallets. MASAK findings indicated that Karslı transferred money abroad and consolidated assets under “PPR Holding Inc.” to disguise criminal proceeds.

The indictment stated that 94 percent of e-money accounts closed in the sector were linked to Papara and that transfers totalling 120 million liras ($3.1 million) were made to Karslı’s family members.

By Jeyhun Aghazada