{"id":1552,"date":"2020-03-19T15:02:25","date_gmt":"2020-03-19T12:02:25","guid":{"rendered":"https:\/\/www.berkerberker.com\/?p=1552"},"modified":"2020-05-14T15:57:02","modified_gmt":"2020-05-14T12:57:02","slug":"amendment-of-the-turkish-banking-law-no-5411","status":"publish","type":"post","link":"https:\/\/www.berkerberker.com\/en\/amendment-of-the-turkish-banking-law-no-5411\/","title":{"rendered":"Amendment Of The Turkish Banking Law No.5411"},"content":{"rendered":"<p class=\"_04xlpA direction-ltr align-justify para-style-body\"><span class=\"JsGRdQ\">The\u00a0<\/span><strong><em class=\"JsGRdQ\">&#8220;THE LAW ON THE AMENDMENT OF THE TURKISH BANKING LAW AND OTHER LAWS&#8221; <\/em><\/strong><span class=\"JsGRdQ\">(&#8220;<strong>The Amendment&#8221;<\/strong>) which amended the <strong>Banking Law No 5411<\/strong>\u00a0<\/span><span class=\"JsGRdQ\">has been published on the Official Gazette dated <\/span><strong><span class=\"JsGRdQ\">25\/02\/2020<\/span><\/strong><span class=\"JsGRdQ\"> numbered<\/span><span class=\"JsGRdQ\"><strong> 31050<\/strong> <\/span><span class=\"JsGRdQ\">and entered into force the same date. The Amendment covers various topics such as the scope of the risk group of banks, new regulations regarding loans and administrative fines which shall be explained more in depth below.\u00a0<\/span><\/p>\n<h2 class=\"_04xlpA direction-ltr align-justify para-style-body\"><strong><span class=\"JsGRdQ\" style=\"color: #850000;\">Scope of The Amendment<\/span><\/strong><\/h2>\n<ul>\n<li><span class=\"JsGRdQ\">The scope of the risk group of banks has been <\/span><span class=\"JsGRdQ\">expanded<\/span><span class=\"JsGRdQ\"> to include the spouses and children of individuals previously listed in a relevant bank&#8217;s risk group.<\/span><strong><em class=\"JsGRdQ\">(Article 3 of the Amendment)<\/em><\/strong><\/li>\n<li><span class=\"JsGRdQ\">While the risk group of State Banks and Turkey Wealth Fund Owned Entities has been amended to include a separate risk group which includes their partners, the amendment regarding the Development and Investment Banks and Participation Banks has been the exact opposite. <em><strong>(Article 3 and 12 of the Amendment)<\/strong><\/em><\/span><\/li>\n<li><span class=\"JsGRdQ\">The scope of Development and Investment Banks&#8217; transactions deemed as loans has been expanded and the Banking Regulatory and Supervisory Agency <\/span><span class=\"JsGRdQ\">(<strong>the &#8220;BRSA&#8221;<\/strong>)<\/span><span class=\"JsGRdQ\"> has been given authority to further expand said scope with the emergence of new practices.<\/span><strong><em class=\"JsGRdQ\">(Article 2 of the Amendment)<\/em><\/strong><\/li>\n<li><span class=\"JsGRdQ\">Turkey Wealth Fund, Turkey Wealth Fund Inc. and actions taken with the funds of these organizations has been <\/span><span class=\"JsGRdQ\">exempt<\/span><span class=\"JsGRdQ\"> from credit restrictions. <\/span><strong><em class=\"JsGRdQ\">(Article 4 of the Amendment)<\/em><\/strong><\/li>\n<li><span class=\"JsGRdQ\">The scope of Development and Investment Banks <\/span><span class=\"JsGRdQ\">actions not deemed as deposits<\/span><span class=\"JsGRdQ\"> has been expanded to <\/span><span class=\"JsGRdQ\">not include<\/span><span class=\"JsGRdQ\"> funds from loanees. <\/span><strong><em class=\"JsGRdQ\">(Article 5 of the Amendment)<\/em><\/strong><\/li>\n<li><span class=\"JsGRdQ\">The Central Bank of the Republic of Turkey has been authorized to determine the <\/span><span class=\"JsGRdQ\">commissions, costs and fees arising out of actions taken by the Banks. <\/span><strong><em class=\"JsGRdQ\">(Article 13 <\/em><em class=\"JsGRdQ\">of the Amendment)<\/em><\/strong><\/li>\n<li><span class=\"JsGRdQ\">With the Amendment, the Banks shall now be under the obligation to prepare a<\/span><span class=\"JsGRdQ\"> prevention plan<\/span><span class=\"JsGRdQ\">. The BRSA has been authorized to take the necessary measures without waiting for the implementation of the banks&#8217; prevention plans if it <\/span><span class=\"JsGRdQ\">determines a <\/span><span class=\"JsGRdQ\">disruption or the possibility of a disruption<\/span><span class=\"JsGRdQ\"> in the banks&#8217; financial structures. <\/span><strong><em class=\"JsGRdQ\">(Article 6 of the Amendment)<\/em><\/strong><\/li>\n<li><span class=\"JsGRdQ\">In the event of a failure to implement the prevention plan or the prevention plan is deemed as ineffective the measures regulated under <\/span><strong><span class=\"JsGRdQ\">Articles 68-69 and 70<\/span><\/strong><span class=\"JsGRdQ\"> of the Banking Law No 5411 shall be implemented. <\/span><strong><em class=\"JsGRdQ\">(Article 7 of the Amendment)<\/em><\/strong><\/li>\n<li><span class=\"JsGRdQ\">The Banking Law has been amended in line with the Law on The Protection of Personal Data to include a <strong>stronger protection regarding customer secrets and banking secrets.<\/strong> With the amendment, <\/span><span class=\"JsGRdQ\">even in the event of the express consent <\/span><span class=\"JsGRdQ\">of the customer, the banks shall not be allowed to transfer said customers data with domestic and foreign individuals or legal entities without<\/span><span class=\"JsGRdQ\"> instruction and\/or request<\/span><em class=\"JsGRdQ\">. <strong>(Article 10 of the Amendment)<\/strong><\/em><\/li>\n<li><span class=\"JsGRdQ\"><strong>Article 76\/A <\/strong>titled <\/span><em class=\"JsGRdQ\">&#8220;Manipulation of the financial market and misleading action.&#8221;<\/em><span class=\"JsGRdQ\"> has been introduced. The BRSA has been authorized to determine the scope of the actions. Such determinations shall be published on the Official Gazette<\/span><em class=\"JsGRdQ\">. <\/em><strong><em class=\"JsGRdQ\">(Article 11 of the Amendment)<\/em><\/strong><\/li>\n<li><span class=\"JsGRdQ\">Development and Investment Banks shall be able to operate with<\/span><span class=\"JsGRdQ\"> interest-free methods<\/span><span class=\"JsGRdQ\">, and the BRSA has been given authority to determine the principles and procedures for these operations. <\/span><strong><em class=\"JsGRdQ\">(Article 12 of the Amendment)<\/em><\/strong><\/li>\n<li><span class=\"JsGRdQ\">The amount of administrative fees regulated under <strong>Articles 145-146 and 147<\/strong> has been increased <strong>up to <\/strong><\/span><span class=\"JsGRdQ\"><strong>100 times<\/strong>.<\/span><span class=\"JsGRdQ\"> The lowest of the administrative fines being <\/span><strong><span class=\"JsGRdQ\">50.000 TRY<\/span><\/strong><span class=\"JsGRdQ\"> and the highest being <\/span><span class=\"JsGRdQ\"><strong>1.000.000 TRY<\/strong>. <\/span><strong><em class=\"JsGRdQ\">(Articles 14-15-16 of the Amendment)<\/em><\/strong><\/li>\n<li><span class=\"JsGRdQ\">In the event of a practice falling under <em>&#8220;Manipulation of the financial market&#8221;<\/em> or a<em> &#8220;misleading action within the financial market&#8221;<\/em> is determined, an <strong>administrative fine<\/strong> shall be imposed. <\/span><strong><em class=\"JsGRdQ\">(Article 11 of The Amendment)<\/em><\/strong><\/li>\n<li><span class=\"JsGRdQ\">The temporary <\/span><span class=\"JsGRdQ\">removal of the signatorial authority <\/span><span class=\"JsGRdQ\">shall be possible in the event of an action being taken by the bank official which causes negative effects on banks. The previous version of this Article only included situations within <\/span><span class=\"JsGRdQ\">the bank officials own bank.<\/span><strong><em class=\"JsGRdQ\">(Article 1 of The Amendment)<\/em><\/strong><\/li>\n<li><span class=\"JsGRdQ\">In the event of a prohibited action taking place contrary to <strong>Article 150<\/strong> of the Banking Law,<\/span><span class=\"JsGRdQ\">obtaining a decision to deny access to the website shall be possible. <\/span><strong><em class=\"JsGRdQ\">(Article 17 of the <\/em><em class=\"JsGRdQ\">Amendment)<\/em><\/strong><\/li>\n<\/ul>\n<p><span class=\"JsGRdQ\">You may reach the original text of the Law on The Amendment of the Turkish Banking Law and Other Laws <a href=\"https:\/\/www.resmigazete.gov.tr\/eskiler\/2020\/02\/20200225-12.htm\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>.\u00a0<\/span><\/p>\n<p><em>If you would like to know more on the Amendment Of The Turkish Banking Law No.5411 or require legal assistance, please get in touch with BerkerBerker Law Office via <strong>info@berkerberker.com<\/strong> or any other contact information listed at our website.\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The\u00a0&#8220;THE LAW ON THE AMENDMENT OF THE TURKISH BANKING LAW AND OTHER LAWS&#8221; (&#8220;The Amendment&#8221;) which amended the<span class=\"excerpt-hellip\"> [\u2026]<\/span><\/p>\n","protected":false},"author":3,"featured_media":1553,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[57,92,76],"class_list":["post-1552","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-amendment","tag-banking-law","tag-corporate-law"],"_links":{"self":[{"href":"https:\/\/www.berkerberker.com\/en\/wp-json\/wp\/v2\/posts\/1552"}],"collection":[{"href":"https:\/\/www.berkerberker.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.berkerberker.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.berkerberker.com\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.berkerberker.com\/en\/wp-json\/wp\/v2\/comments?post=1552"}],"version-history":[{"count":4,"href":"https:\/\/www.berkerberker.com\/en\/wp-json\/wp\/v2\/posts\/1552\/revisions"}],"predecessor-version":[{"id":2113,"href":"https:\/\/www.berkerberker.com\/en\/wp-json\/wp\/v2\/posts\/1552\/revisions\/2113"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.berkerberker.com\/en\/wp-json\/wp\/v2\/media\/1553"}],"wp:attachment":[{"href":"https:\/\/www.berkerberker.com\/en\/wp-json\/wp\/v2\/media?parent=1552"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.berkerberker.com\/en\/wp-json\/wp\/v2\/categories?post=1552"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.berkerberker.com\/en\/wp-json\/wp\/v2\/tags?post=1552"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}