Turkey Detains 21 in Fraud Probe of Istanbul Gold Refinery

Turkish authorities have detained 21 to 22 individuals linked to the Istanbul Gold Refinery (IAR) and related companies on charges of obtaining state support through fraudulent means, with prosecutors issuing detention warrants for 23 suspects. The investigation revealed that the suspects, including main shareholder Özcan Halaç, set up companies to claim a 3% state subsidy on over $543 million in exports, causing an estimated $12.5 million loss to the state. The fraud involved importing raw gold, refining it domestically, and treating it to appear processed before legally exporting it to earn foreign exchange income and receive state incentives, which were meant to promote conversion of foreign currency into Turkish lira. The suspects are accused of violating Turkish laws related to the central bank, public finance, and the protection of the lira's value. The Istanbul Gold Refinery, owned predominantly by the Halaç family and one of the London Bullion Market Association-accredited refineries, has significant regional importance and a substantial annual processing capacity. Turkish prosecutors continue to seek two remaining suspects and have conducted simultaneous raids across Istanbul to enforce the arrests.