“Communiqué Amending The Communique On Supporting Conversion To Turkish Lira Deposit And Participation Accounts” (“Communiqué-A”) and “Communiqué Amending The Communique On Deposits And Participation System (Yuvam) Accounts For Citizens Residing Abroad” (“Communiqué-B”) published on the Official Gazette dated March 22nd, 2022 and numbered 31786; and entered into force on the same day.
With Communiqué -A;
In order to benefit from the Currency Protected Deposit System by virtue of the 1st paragraph of Article 4 of the Communiqué on Supporting the Conversion of Turkish Lira Deposit and Participation Accounts (Number 2022/14), a foreign currency deposit account in US Dollar, Euro or British Pound and a participation fund account in foreign currency must be registered. In terms of real persons, the condition of "being present as of December 20th, 2021"
has been abolished.
This amendment enabled foreign currency deposit accounts in US Dollar, Euro or British Pound and participation fund accounts in foreign currency created by real persons after December 20th, 2021 to be included in the Currency Protected Deposit System. Thus, real persons may be able to benefit from the Currency Protected Deposit System throughout effective period of the Currency Protected Deposit System with the condition of converting their foreign currency deposit accounts and foreign currency participation fund accounts into Turkish Lira.
However, the condition of having a foreign currency deposit account in US Dollar, Euro or British Pound and a participation fund account in foreign currency as of December 31st 2021 for legal entities stipulated in the 1st paragraph of Article 4 of the Communiqué on Supporting the Conversion of Turkish Lira Deposit and Participation Accounts has been preserved.
In addition to these amendments; it is also stipulated that the procedures and principles regarding the renewal of the accounts created within the scope of the Currency Protected Deposit System at the end of maturity period will be determined by the Central Bank of the Republic of Turkey and that the Central Bank of the Republic of Turkey may charge commissions and/or expenses.
With Communiqué-B;
By amending the Communiqué on Deposit and Participation System (YUVAM) Accounts for Citizens Residing Abroad (Number: 2022/7), aside from citizens of the Republic of Turkey who have a residence or work permit or whose foreign address is registered as their place of residence in the address registration system and individuals who have been given a Blue Card;
foreign real persons and legal entities can now also benefit from the Currency Protected Deposit System.
Within the scope of Communiqué-B, the scope of foreign real persons who can benefit from the Currency Protected Deposit System is limited to foreign real persons who "meet the conditions for opening an account in banks".
Within the scope of Communiqué-B, in line with Communiqué-A, it is also stipulated that the procedures and principles regarding the renewal of accounts opened under the Currency Protected Deposit System at the end of maturity will be determined by the Central Bank of the Republic of Turkey and that the Central Bank of the Republic of Turkey may charge commissions and/or expenses.
To access the full text of Communiqué-A, please click
here, and to access the full text of Communiqué-B, please click
here.
MORAL & PARTNERS
Aybike Gürcan, Associate
Orhun Tezel, Trainee Lawyer