The Communiqué Amending the Communiqué No: 2008-32/34 Regarding the Decision No: 32 on the Protection of the Value of Turkish Currency (the “Communiqué”) introduced various amendments which aim to protect the value of the Turkish Lira by improving the mechanisms for monitoring the export of currency out of Turkey. These amendments were effected through amendments to Articles 3, 4 and 10 of the original Communique and were effective as of 31 December 2015.
Notification and Declaration Obligations
The principal amendment was the introduction of additional notification and declaration obligations imposed on the customs administration and on persons leaving Turkey in the possession of currency which exceeds the following thresholds:
- more than 25,000 Turkish Liras or with a document enabling the payment of Turkish Liras in this amount, or
- more than 10,000 Euros or the equivalent in another foreign currency.
When these thresholds are exceeded, then a declaration must be submitted to the customs office at the port of departure using the “cash declaration form” published by the Ministry of Customs and Trade.
B. Customs Administration
In addition to the above, the customs administration is required to submit a monthly statement to the Central Bank regarding any currency outflows which exceed the value of 50,000 US Dollars, or the equivalent in Turkish Lira or another foreign currency.
In accordance with Article 4 (e) of the Communique, banks are required to make a notification to the Central Bank within 30 days of a foreign currency transfer (including foreign exchange deposit account transactions) exceeding the amount of 50,000 US Dollars or the equivalent in foreign currency. However, please note that import, export and invisible transactions are exempted from this notification equipment.
The Communiqué introduced a new Article 10 which regulates the notification of capital exports. This provision shall apply to capital exports in kind or in cash, by persons domiciled within Turkey via:
- incorporating a company abroad
- becoming a shareholder of an existing company abroad, or
- establishing a branch abroad;
and such persons shall be required to complete a form regarding the capital exports within 3 months as of the date of the capital export and within the first 3 months of every other calendar year. The relevant form is published on the website of the Ministry of Economy and should be sent to the Undersecreteriat of Treasury and the Ministry of Economy.
Furthermore, such persons who fall within the scope of Article 10 are required to inform the Undersecreteriat of Treasury and the Ministry of Economy if (i) the relevant company or branch is liquidated, and at the latest within 3 months from the effective date of the liquidation, or (ii) the relevant individual transfers his shares in such company, such notification being due within 3 months after the effective date of the share transfer.