In an ongoing effort to better monitor and control the capital
flows out of Turkey, on December 30, 2015, the Undersecretariat of
the Treasury updated its procedures on (i) the export of Turkish
lira exceeding TRY 25,000 (approx. USD 8,200), and (ii) the export
of foreign currency exceeding the equivalent of EUR 10,000, by
amending Communiqué No. 2008-32/34 on Decree No. 32 on the
Protection of the Value of the Turkish Lira.
What the communiqué says
Under the communiqué, the Treasury has tightened the
procedures to export Turkish lira and foreign currency:
Persons travelling abroad with
Turkish lira exceeding TRY 25,000 or foreign currency exceeding the
equivalent of EUR 10,000 must notify the customs administration by
submitting a cash declaration form. The customs administration is
obligated to report the failure to submit, or misrepresentations,
in a declaration to the Financial Crimes Investigation Board and to
the public prosecutor.
The customs administration is
obligated to notify the Turkish Central Bank of Turkish lira and
foreign exchange outflows exceeding USD 50,000 or its equivalent on
a monthly basis.
Turkish banks are obligated to notify
the Central Bank in relation to foreign exchange outflows exceeding
USD 50,000 within 30 days of the transaction, with the exception of
import, export and "invisible" or
The Ministry of Economy and the
Treasury must be notified of capital outflows for the purposes of
establishing a company or a branch, or becoming a shareholder, of a
company abroad. The Ministry of Economy and the Treasury must also
be notified if these companies are liquidated or their shares
transferred. Previously, only the Treasury oversaw capital
Annual reporting of capital outflows
are now filed with the Ministry of Economy, instead of the
The new declaration and reporting requirements for Turkish lira
and foreign currency outflows are intended to better monitor
currency outflows. Financial institutions and others should
consider how to ensure compliance with these new rules.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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