The Law on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions numbered 6493 (the “Law") was amended with the “Law No 7192 on Amendment of the Law on Payment and Securities Settlement Systems, Payment Services and Electronic Money Institutions and Other Laws” (“Law No. 7192”) dated November 12, 2019, which was published in the Official Gazette dated 22 November 2019 and numbered 30956.
With the Additional Article 1 incorporated in the Law, the “Union of Payment and Electronic Money Institutions of Turkey” (“Union”) is established. This Additional Article 1 will enter into force 6 months after publication in the Official Gazette.
In accordance with paragraph 1 of the Additional Article 1 of the Law:
- The Union is a professional organization with public institution status having a legal entity,
- The payment and electronic money institutions shall apply to the Union to become a member within 1 month following the date of their official authorization.
In accordance with paragraph 4 of the Provisional Article 3 of the Law, payment institutions and electronic money institutions operating before the entry into force of this article shall be a member of the Union within one month following the date on which the Union starts its operations.
The authorities and duties of the Union are as follows in accordance with paragraph 2 of the Additional Article 2:
- In order to facilitate the development of the profession, to conduct training, promotion and research activities,
- By determining the principles of the profession, to ensure that the members work in accordance with the requirements of the economy within the discipline and unity required by the profession,
- To determine the professional principles and standards to be followed by the members of the Union,
- To announce the decisions taken in accordance with the relevant legislation and the measures requested to be taken by T.R. Central Bank to its members,
- To take and implement all necessary measures to prevent unfair competition among its members,
- To determine the terms and conditions to be followed by the members in their announcements and advertisements by type, form, quality and quantity,
- To file lawsuits on matters concerning the common interests of the members in accordance with the decision of the board of directors,
- Ensuring cooperation between its members on joint projects,
- To form an arbitral committee in accordance with the procedures and principles to be prepared by the Union to ensure the evaluation and resolution of disputes between the members and their individual customers and to be approved by T.R. Central Bank, without prejudice to the provisions of the Law on Consumer Protection dated 07.11.2013 and numbered 6502 and the application rights granted in other laws,
- To perform other duties specified in this Law.
The establishment of the Union and its activities should be closely monitored in the near future. The amendments to the Law with the Law No. 7192 are not limited to those mentioned in this article and should be carefully reviewed by those who have operations in this sector.