Turkish Money Laundering Probe Targets Companies Owned by OpenPayd Founder
Turkish authorities have launched a financial crime investigation into two companies owned by Ozan Özerk, the Cypriot-Norwegian entrepreneur who founded the Malta-based payment platform OpenPayd. The probe targets an electronic money institution and an insurance company allegedly used to launder criminal proceeds, including funds from illegal betting operations, according to prosecutors in Istanbul.
While Özerk has not been personally implicated in the investigation, the case raises questions about oversight of financial technology companies that operate across borders. OpenPayd itself is not a focus of the Turkish probe, though the platform has previously been identified in journalistic investigations as a conduit used by scammers to move money from victims to fraudulent trading platforms.
Background and Context
The investigation centers on Ozan Elektronik Para Anonim Şirketi, an electronic money institution that Turkish prosecutors allege was "used to introduce criminal assets into the financial system under the guise of legitimate commercial activity." The company has been placed under a trustee as authorities examine its alleged role in processing illicit funds.
This financial scrutiny comes amid growing concerns about the misuse of payment platforms and electronic money institutions in money laundering schemes. According to the Malta Financial Services Authority (MFSA), which regulates OpenPayd, the authority "takes note of any information that may be relevant to the fitness and properness of persons linked to MFSA-licensed entities and will take appropriate action where necessary."
Key Figures and Entities
Ozan Özerk, a dual Cypriot-Norwegian national, founded OpenPayd, which provides payment infrastructure services and is licensed by the MFSA. While Özerk owns the companies under investigation in Turkey, OpenPayd has stated that he is not involved in the board of directors or management teams of their entities. Özerk did not respond to requests for comment on the Turkish investigation.
The second company implicated in the alleged laundering scheme, Aveon Global Sigorta AS, is also majority-owned by Özerk. Turkish prosecutors allege that "criminal proceeds were injected into the financial system by disguising them as insurance premiums or commercial transactions" through this insurance company.
Legal and Financial Mechanisms
According to Turkish prosecutors, the alleged scheme involved deliberately weakening internal control mechanisms at Ozan Elektronik Para Anonim Şirketi. Authorities allege that "transactions originating from high-risk countries such as Libya and Iraq were not blocked," allowing suspicious funds to enter the financial system.
The investigation has resulted in the seizure of assets worth €1.4 million and detention orders for 11 employees in relation to funds derived from "illegal betting activities." This follows an earlier operation where assets worth over €8 million were seized and six executives were arrested, indicating the scale of the alleged operation.
International Implications and Policy Response
The case highlights ongoing challenges in regulating cross-border financial technology companies and preventing their misuse for illicit purposes. While the Turkish probe focuses on domestic entities, it intersects with international concerns about payment platforms being exploited by fraudulent schemes.
In Malta, where OpenPayd is regulated, the Financial Arbiter has ordered the company to pay €26,000 in compensation to an elderly woman who was "aggressively manipulated" by scammers, with her money credited to third parties without her knowledge. Financial Arbiter Alfred Mifsud has indicated that planned legal changes aim to ensure that any licensed financial service provider involved in suspected fraudulent payment transactions will be answerable to his office.
The MFSA has stated that it "treats all allegations relating to money laundering or financial misconduct with utmost seriousness and works closely with the Financial Intelligence Analysis Unit and other domestic and international authorities to ensure that any potential risks to the integrity of the financial system are promptly and effectively addressed."
Sources
This report draws on reporting by Times of Malta, OCCRP, Swedish Television (SVT), and 30 other media partners involved in the Scam Empire investigation, as well as statements from Turkish prosecutors and the Malta Financial Services Authority. The investigation was based on leaked data showing payments derived from online fraud that ran through dozens of companies, including OpenPayd.
