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Central Bank of Turkey Authorized to Request Information and Documents Regarding FX Transactions

Legal Alerts
Banking & Finance
General

Recent Development

The Council of Ministers’ decision amending the articles of association of the Central Bank of the Republic of Turkey (the “CBRT”) entered into force with its publication in the Official Gazette dated June 23, 2018 and numbered 30457.

What’s New?

  • In line with the new FX borrowing regime set out in the Decree No. 32 on the Protection of the Value of the Turkish Currency, the Capital Movements Circular and the relevant communiqués (“FX Legislation”), the amendment authorizes the CBRT to request information and documents from real and legal persons in order to monitor these persons’ FX positions. The amendment also sets forth that the CBRT will determine the methods and principles regarding the collection, monitoring and the scope of such information and documents.

  • If the CBRT outsources the collection of such information and documents, both the outsourcing institution and its employees are obliged to comply with the confidentiality provisions under the CBRT’s articles of association and any violation of this obligation is subject to imprisonment and judicial monetary fines.

Conclusion

In addition to the new restrictions and obligations set out in the FX Legislation in relation to FX borrowings, the CBRT is now authorized to request information and documents deemed necessary within the scope of these regulations.