Amendment On The Communique Regarding Decree No. 32 On The Protection Of The Value Of The Turkish Lira Currency

Certain amendments have been made in the Communiqué regarding Decree no.32 on the Protection of the Value of the Turkish Lira Currency (the “Communiqué”) with the adoption of the Amendment Communiqué regarding the Communiqué.

The first amendment which is made in Article 3 of the Communiqué introduces a new obligation for the passengers leaving the country. Accordingly, the passengers carrying at least TRY 25.000 or any document providing payment in equivalent Turkish lira amount are allowed to export Turkish currency on the condition that such passengers declare this amount of Turkish currency through a cash report form. If this obligation is breached by passengers, Customs Administration shall have right to seize the relevant assets and make a notification.

Furthermore, a new obligation has been introduced for banks in Article 3. In accordance with the same, the banks are obliged to notify any transfers, other than import, export and invisible transactions, which are exceeding USD 50.000 to the Central Bank of Turkey within 30 days as of such transfer.

Article 4 of the Communiqué regulates a similar amendment. This amendment sets forth an obligation of notification through cash report form for those who are leaving the country with carrying cash exceeding EUR 10.000 or its equivalent of foreign currency notes. As likely in the previous amended Article, Customs Administration shall notify any breach of obligation or misreporting to the Central Bank of Turkey and shall have right to seize the relevant assets.

The Customs Administration shall notify the Central Bank monthly of any USD 50.000 or its equivalent of foreign currency notes being carried out of the country.

In addition to the above, Article 10 of the Communiqué has been considerably amended. This amendment relates to those who are resident in Turkey and who invest in a foreign country. (i.e. founding a company or being a shareholder in a foreign company) In this respect, such residents shall fill the notification form which is published on the website of the Ministry of Economy within 3 months as of the first export in cash or in kind. To finalize, they shall send this form to the Ministry of Economy and Undersecretariat of Treasury.

Moreover, those who are resident in Turkey and who export capital in cash or in kind out of Turkey, shall always update the said notification form in scope of the transfer explanations. Additionally, in the event of any liquidation of the partnerships or branches of such foreign company, the residents in Turkey shall notify to the Ministry of Economy and Undersecretariat of Treasury within 3 months as of the date of liquidation.