Presidential Decree on Automatic Exchange of Financial Account Information Published in Turkey

Presidential Decree numbered 1965 was published on the Official Gazette dated 31.12.2019, which is related to the approval of the “Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information” signed in Paris on 21.04.2017 (hereinafter referred to as “Agreement”). The Agreement will enter into force following the completion of the domestic legal processes pursuant to Article 7 of the Agreement.

The Agreement envisages that the information will be automatically exchanged on annual basis. According to the Agreement, the notifications to be made by various “financial institutions”, including banks, custodial institutions, insurance companies and investment banks (including mutual funds), will include the following information:

  • The name, address, TIN(s), jurisdiction(s) of residence and date and place of birth (for real persons) and, in the case of any entity that is an account holder and that, after application of the due diligence procedures, is identified as having one or more controlling persons that is a reportable person, the name, address, jurisdiction(s) of residence and TIN(s) of the entity and the name, address, jurisdiction(s) of residence, TIN(s) and date and place of birth of each reportable person,
  • The account number or functional equivalent in the absence of an account number,
  • The name and IN of the reporting financial institution,
  • The account balance or value including, as of the end of the reporting period, if the account was closed during such year or period, the closure of the account,
  • For any custodial account, the total gross amount of interest, dividend, and other income generated with respect to the assets held in the account, and paid or credited to the account during the relevant reporting period
  • For any depository account, the total gross amount of interest paid or credited to the account during the relevant reporting period,
  • For other account types, total gross amount paid or credited to the account holder during the relevant reporting period, which is generated through sales or payments of financial assets, or total gross amount of any redemption payments made to the account holder during the relevant reporting period.

On the other hand, two different dates have been determined as the starting time for the exchange of information. September 2018 is determined for new accounts and September 2018 or September 2019 are determined based on the date of determination that the existing account is in the scope of mandatory exchange of information. Accordingly, the relevant information will be subject to exchange within 9 months following the end of the relevant calendar year.

Read the full bulletin.