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Legal Alerts

Banks’ Customer Due Diligence Expanded

Legal Alerts
Banking & Finance

Recent Development

The Banking Regulatory and Supervisory Authority amended the Regulation on Banks’ Loan Transactions (the “Amendment“). The Amendment entered into force upon its publication in the Official Gazette No. 30860 dated August 16, 2019.

What’s New?

  • Prior to the Amendment, at the time of loan allocation and every year for as long as the loan exists, Turkish banks were required to obtain financial statements from their clients whose credit risk amount in the Risk Center of the Banks Association of Turkey was equal to or more than TRY 500 million.
  • The Amendment decreased the TRY 500 million threshold to TRY 100 million, except for FI clients.
  • Pursuant to the Amendment, banks are also required to obtain from their Turkish resident clients a report showing their compliance with corporate governance principles under the Communiqué on Corporate Governance (the “Communiqué“)  at the time of loan allocation and every year for as long as the loan exists. The Turkish resident clients which are not subject to the Communiqué, must provide a report prepared according to the Communiqué’s corporate governance principles.


The Amendment expands the scope of Turkish customer due diligence.