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Legal Alerts

Turkish Account Bank’s Involvement in Loan Disbursements

Legal Alerts
Banking & Finance

Recent Development

The Central Bank of Turkey amended the Capital Movements Circular.

What Do the Amendments Say? 

As explained in our Client Alert dated February 19, 2019, Turkish banks are required to obtain the receiving company’s written declaration as well as the substantiating information and documents in order to determine whether unidentified FX transfers made from abroad to such Turkish company’s account for USD 50,000 or more, are in respect of the loans utilized by such company.

Pursuant to the latest amendment, if the relevant company fails to provide the written declaration and/or information and documents substantiating the declaration, the bank will not complete the transfer and will return the FX amount.