The Financial Action Task Force, or FATF, the international body for setting the global standards to combat terrorist financing, held its plenary session this week in Paris. In the days before the meeting, Bloomberg reported that the Turkish lira weakened and stocks dropped resulting from concern over a blacklisting, in light of recent headlines alleging corruption and illicit finance. However, FATF reported today that Turkey will not be added to the short, black list of countries requiring “counter-measures” (Iran and North Korea).

Still, Turkey remains a jurisdiction of concern. FATF noted the challenges “regarding Turkey’s framework for identifying and freezing terrorist assets” in accordance with United Nations security council resolutions, and encouraged, “Turkey to address these remaining strategic deficiencies and continue the process of implementing its action plan.”

In its brief statement, FATF encouraged Turkey for “improving its CFT regime,” but failed to mention that Ankara was first notified of its deficiencies in 2007, when a FATF team alerted the Turks that, after a “mutual evaluation,” it had not adequately criminalized terrorism finance in the country, among other problems.

The expectation was that Turkey would move quickly to redress the situation. However, Turkey’s foot-dragging ultimately led FATF to issue a blacklist warning on October 19, 2012. To the relief of Turkey’s Western allies (and no doubt, Turkish financial institutions), Ankara adopted legislation in the 11th hour that precluded punitive action in February 2013. But this did not remove Turkey from FATF’s list of jurisdictions “that have not made sufficient progress in addressing the deficiencies.”

Today’s FATF statement makes it clear that Turkey remains a problem. Admittedly, Ankara is not alone. Also on the “gray list” are Algeria, Ecuador, Ethiopia, Myanmar, Pakistan, Syria and Yemen. Turkey, however, is the only NATO member on this list.

Turkey’s omission from the black list was both predictable and appropriate. Turkey does not belong on the same list as Iran or North Korea. However, troubling questions remain about Ankara’s relationship with Iranian gold traders, Hamas leaders, al Qaeda in Syria, and persons designated under the U.S. sanctions regime.

Jonathan Schanzer is vice president for research at the Foundation for Defense of Democracies.