ISTANBUL: An international watchdog downgraded Turkey, Mali and Jordan to a so-called grey list on Thursday for failing to head off money laundering and terror financing.

Turkey’s addition to the list could further erode foreign investment after a years-long exodus and a selloff in recent weeks in the lira currency.

Pakistan stays on FATF's 'grey-list'

The Financial Action Task Force (FATF), set up by the G7 group of advanced economies to protect the global financial system, found that “serious issues of supervision” of the banking and real estate sectors remain in Turkey, FATF President Marcus Pleyer told a news conference.