27 June 2013 THURSDAY Official Gazette Number : 28690

LAW

LAW ON PAYMENT AND SECURITIES SETTLEMENT SYSTEMS, PAYMENT SERVICES AND ELECTRONIC MONEY INSTITUTIONS

Law Number
: 6493
Date of Acceptance
: 20/6/2013
Official Gazette in which it was published : Date : 27/6/2013 Number : 28690 Düstur in which it was published : Series : 5 Volume : 53

PART ONE

Purpose, Scope and Definitions

Purpose

ARTICLE 1 – (1) The purpose of this Law is to regulate the procedures and principles regarding payment and securities settlement systems, payment services, payment institutions and electronic money institutions.

Scope

ARTICLE 2 – (1) This Law covers payment and securities settlement systems, payment services, payment institutions and electronic money institutions.

Definitions

ARTICLE 3 – (1) In the implementation of this Law;

a) Recipient: The real or legal person to whom the funds subject to the payment transaction are intended to reach,

b) Bank: The Central Bank of the Republic of Turkey Joint Stock Company,

c) Electronic communications operator: The operator defined within the framework of the Electronic Communications Law dated 5/11/2008 and numbered 5809,

ç) Electronic money: The monetary value issued in exchange for funds accepted by the electronic money issuing institution, stored electronically, used to perform the payment transactions defined in this Law, and accepted as a payment instrument by real and legal persons other than the electronic money issuing institution,

d) Electronic money institution: The legal person authorized to issue electronic money within the scope of this Law,

e) Fund: Banknote, coin, book money or electronic money,

f) Sender: The real or legal person who gives a payment order from their own payment account or without having a payment account,

g) Participant: The legal person who has the authority to give transfer orders directly by participating in the system and is obliged to comply with the system rules,

ğ) Personal security information: Information such as password, expiration date, security number that can be used when performing a transaction with a payment instrument and that identifies the payment instrument and the identity of the payment instrument user,

h) Control: The direct or indirect possession of the majority of the capital of a legal person, without seeking the condition of owning at least fifty-one percent, or, although not possessing this majority, the possession of privileged shares or the disposal of the majority of voting rights based on agreements made with other shareholders, or the possession of the power to appoint or dismiss the majority of the members of the board of directors required for a decision in any way,

ı) Board: The Banking Regulation and Supervision Board,

i) Authority: The Banking Regulation and Supervision Agency,

j) Securities settlement system: The structure that provides the necessary infrastructure for clearing and settlement transactions carried out to ensure the realization of securities transfers arising from transfer orders between three or more participants and has common rules,

k) Central counterparty: The institution that undertakes the completion of transactions by assuming the role of buyer against the seller and seller against the buyer between the parties of financial contracts traded in one or more markets,

l) Settlement: The fulfillment of obligations arising from the transfer of funds or securities between two or more parties,

m) Settlement account: The account held at the Bank, a settlement institution or a central counterparty, used to safekeep funds or securities and to ensure the settlement of transactions between participants in the system,

n) Settlement institution: The institution that holds a settlement account with it and can extend credit to the participant for settlement purposes when necessary,

o) Netting: The mutual offsetting of receivables and debts arising from transfer orders sent and received by a participant and their conversion into a single receivable or debt,

ö) Payment instrument: The card, mobile phone, password and similar personalized instrument determined between the payment service provider and its user and used by the payment service user to give a payment order,

p) Payment order: The instruction given by the payment service user to the payment service provider for the purpose of realizing the payment transaction,

r) Payment account: The account opened in the name of the payment service user and used in the execution of the payment transaction,

s) Payment service: The services specified in Article 12 of this Law,

ş) Payment service user: The real or legal person who benefits from a specific payment service in the capacity of sender, recipient or both,

t) Payment service provider: The institutions specified in Article 13 of this Law,

u) Payment transaction: The activity of depositing, transferring or withdrawing funds carried out upon the instruction of the sender or recipient,

ü) Payment institution: The legal person authorized within the scope of this Law to provide and perform payment services,

v) Payment system: The structure that provides the necessary infrastructure for clearing and settlement transactions carried out to ensure the realization of fund transfers arising from transfer orders between three or more participants and has common rules,

y) Money remittance: The payment service in which the sender transfers funds to the recipient or to the payment service provider acting on behalf of the recipient, without any account being opened in the name of the sender or recipient,

z) System: Payment system and securities settlement system,

aa) System operator: The legal person responsible for the daily operation of the system and holding the operating license required for the operation of the system,

bb) Clearing: The transfer of transfer orders sent to the system, the intermediation of the mutual transmission of these orders and the obtaining of provision in cases where provision is obtained before settlement, and in some cases the netting of these orders,

cc) Clearing house: The institution responsible for calculating the net debt or credit position of participants,

çç) Transfer order:

1) The participant instruction regarding the transfer of a certain amount of funds between participants within the system,

2) The instruction in accordance with the system rules that results in the assumption or fulfillment of a payment obligation,

3) The participant instruction to transfer rights over securities and other capital market instruments within the system, whether recorded or otherwise,

dd) (Added:12/11/2019-7192/4 md.) The Association: The Union of Payment and Electronic Money Institutions of Turkey,

means.

SECOND PART

System

General provisions

ARTICLE 4 – (1) The system shall be operated by the system operator. Persons other than the Bank and those who have obtained an operating license pursuant to Article 5 of this Law cannot operate as a system operator.

(2) The rules and contracts regarding the operation of the system and participation in the system shall be determined by the system operator in accordance with the regulation to be issued by the Bank.

(3) The Bank is authorized to make the necessary regulations to ensure the smooth and uninterrupted operation of the systems.

Operating license of the system operator

ARTICLE 5 – (1) The system operator may operate a system within the scope of this Law, provided that it obtains permission from the Bank.

(2) The system operator must;

a) Be established as a joint-stock company,

b) Have a paid-in capital of at least five million Turkish Liras in cash and free from any kind of collusion,

c) Employ a sufficient number of qualified personnel to operate the system and have the necessary technical equipment and management,

ç) Have adequate risk management and take the necessary measures regarding the security and reliability of information and business continuity,

d) Ensure the compliance of the system, participants, and operating rules with this Law and the regulations to be issued pursuant to this Law,

e) Issue shares for cash and all of them must be registered shares,

f) Have a transparent and open partnership structure and organizational chart that will not prevent the effective supervision of the Bank,

g) Those who have a share of ten percent or more in its capital and those who hold control must possess the qualifications required for bank founders in the Banking Law dated 19/10/2005 and numbered 5411,

is required.

(3) (Repealed:12/11/2019-7192/5 md.)

(4) The system operator granted an operating license shall notify the Bank that it has started operations within ten days from the date it starts operations.

(5) The procedures and principles regarding the implementation of this article shall be regulated by a regulation to be issued by the Bank.

(6) The provisions of this article shall not apply to systems operated by the Bank.

Evaluation of the operating license application

ARTICLE 6 – (1) If the conditions, qualifications, and competencies required under this Law are met, the information and documents requested by the Bank are fully completed, and the Bank decides that the application is positive, permission shall be granted to operate as a system operator within the scope of Article 5 of this Law, and the decision to grant the operating license shall be published in the Official Gazette.

(2) The application for a system operating license made to the Bank under the provisions of this Law shall be concluded by the Bank within six months following the complete submission of the requested information and documents regarding the application. If the decision is negative, it shall be notified to the relevant parties together with its reasons.

Termination of the operating license

ARTICLE 7 – (1) The operating license of the system operator shall automatically terminate; a) In the event of transactions such as merger or division that change the legal structure of the system operator, if the legal entity of the system operator ceases to exist, on the date the legal entity ceases to exist, b) If the system operator is dissolved pursuant to Articles 529, 530, and 531 of the Turkish Commercial Code dated 13/1/2011 and numbered 6102, c) If the system operator, after starting operations, has not been in operation for more than six months within one year, on the date the six-month period expires.

(2) Following the notification of the situations regulated in the first paragraph by the system operator to the Bank pursuant to the third paragraph of Article 23 of this Law or the determination of these situations, the Bank shall publish in the Official Gazette that the operating license has terminated.

System oversight

ARTICLE 8 – (1) The Bank is authorized to oversee the systems established or to be established to ensure their uninterrupted operation. (Added sentence:12/11/2019-7192/6 md.) The Bank's oversight authority covers all parties closely related to the operation of the system, such as the system operator, system participants, settlement institution, other connected systems, and external service providers.

(2) (Amended:12/11/2019-7192/6 md.) The Bank may request records, information, and documents related to all transactions carried out by organizations within the scope of oversight activities, on an instant and transaction basis when deemed necessary. Organizations within the scope of oversight activities are obliged to submit all kinds of records, information, and documents, even if confidential, to the Bank within the framework of the procedures and principles to be determined by the Bank and to make them ready for the Bank's oversight.

(3) The procedures and principles regarding system oversight shall be determined by a regulation to be issued by the Bank.

(4) (Added:12/11/2019-7192/6 md.) The Bank may become a shareholder in systemically important established and to-be-established system operators in order to ensure the uninterrupted operation of systems.

Situations requiring precautionary measures and measures to be taken

ARTICLE 9 – (1) The Bank;

a) Acting outside the scope of the operating license,

b) Acting contrary to this Law and the regulations issued pursuant to this Law,

c) Endangering the security, soundness, and stability of the system,

ç) Determining that the system operator has lost the conditions specified in Article 5 of this Law,

d) The system operator's avoidance of cooperation in the oversight of the system,

e) Failure to start using this authorization within one year from obtaining the operating license,

not starting,

f) The system operator's notification to the Bank that it explicitly renounces the system operating authorization or has stopped system activities,

g) Determining that the operating license was obtained with false statements and documents,

ğ) Acting contrary to the third paragraph of Article 23 of this Law,

h) The Bank's conclusion that the system operator's continuation of system operations threatens the stability of the financial system,

takes the appropriate measures regarding the functioning of the system in the event that it determines such cases.

(2) In the event that the Bank determines the cases referred to in the first paragraph, according to the severity of the breach;

a) granting the system operator a reasonable period of time to remedy the breach,

b) To request that the Bank take the measures it deems appropriate in order for the reconciliation with the system operator to take place,

c) To request that the system operator expel from the system the participants that fail to fulfil their obligations under this Law,

ç) To revoke the system operator's operating license or to temporarily suspend the operating license granted to the system operator until the detected violation is eliminated,

d) To temporarily take over the management of the system operator in order to prevent the emergence of a systemic risk that could threaten financial stability,

tedbirlerini uygular.

(3) The Bank shall notify the relevant system operator of the measures it will apply within the scope of the second paragraph, together with their justifications.

(4) In the event that the Bank takes the measures set out in subparagraphs (ç) and (d) of the second paragraph, it shall publish this matter in the Official Gazette.

THIRD CHAPTER

Transfer Order, Netting and Collateral, and Determination of Systems

Transfer order, netting and collateral

ARTICLE 10 – (1) The moment at which the transfer order becomes irrevocable is clearly determined in the system rules, and after this moment the transfer order cannot be revoked by the participant or a third party.

(2) The moment of entry of the transfer order into the system is determined in the system rules.

(3) Any measure and decision regulated by laws that prevents the participant or the system operator from disposing of funds or securities, including suspension, restriction or permanent cessation of transfers of funds or securities, shall apply to transfer orders to be entered into the system after the notification of the said measure and decision to the system operator.

(4) If the system operates on a netting basis, transfer orders entered into the system before the notification of the measure and decision referred to in the third paragraph to the system operator shall be included in the netting process.

(5) On the day the measures and decisions referred to in the third paragraph are notified to the system operator, the funds and securities in the participant's settlement account shall be used primarily for the fulfillment of the participant's obligations existing in the system. (6) The measures and decisions referred to in the third paragraph shall have effect with respect to the rights and obligations of the participant or the system operator in the system as of the moment the said measure and decision are notified to the system operator.

(7) (Amended:12/11/2019-7192/7 md.) The system operator may request collateral from participants to be used in case the transactions in the system cannot be terminated for any reason or the participant fails to fulfill its obligations in the system. Collaterals are monitored in a separate account. The measures and decisions in the third paragraph shall not apply to these collaterals. In case capital market instruments are taken as collateral within the scope of this article, Article 47 of the Capital Markets Law dated 6/12/2012 and numbered 6362 shall apply. In case assets other than capital market instruments are taken as collateral within the scope of this article, the system operator may convert these collaterals into cash and use them without any obligation to fulfill any precondition such as making any notification or warning, granting time, obtaining permission or approval from judicial or administrative authorities, converting the collateral into cash by auction or any other way, for the termination of the transactions in the system and the fulfillment of the participant's obligations in the system within the framework of the system rules.

Determination and announcement of systems

ARTICLE 11 – (1) The Bank shall determine the systems that will be subject to the provisions of Article 10 of this Law and announce them to the public in the Official Gazette.

FOURTH CHAPTER Payment Services and Payment Institutions

Payment service

ARTICLE 12 – (1) Payment services under this Law;

a) All transactions necessary for the operation of the payment account, including services enabling cash to be placed on a payment account and cash withdrawals from a payment account,

b) Direct debit, including one-off direct debits, payment transaction made with a payment card or a similar instrument, and money transfer including regular payment order, involving the transfer of funds in the payment account of the payment service user held with the payment service provider,

c) Issuing or accepting payment instruments,

ç) Money remittance,

d) Payment transaction where the consent for the execution of the payment transaction is given by the payer through an information or electronic communication device and the payment is made to an information or electronic communication operator acting only as an intermediary between the payment service user and the provider of goods or services,

e) Services for intermediating invoice payments,

f) (Added:12/11/2019-7192/8 md.) Payment initiation service provided at the request of the payment service user in relation to a payment account held with another payment service provider,

g) (Added:12/11/2019-7192/8 md.) Service of presenting consolidated information on one or more payment accounts held by the payment service user with payment service providers, on online platforms, provided that the consent of the payment service user is obtained,

ğ) (Added:12/11/2019-7192/8 md.) Other transactions and services in the field of payments that reach the level to be determined by the Bank in terms of total size or field of effect,

mean.

(2) The following transactions and services are not considered payment services under this Law:

a) Payment transaction made directly in cash to the payee without using an intermediary

b) Payment transaction made through a commercial agent authorized to negotiate or buy and sell goods or services on behalf of the payer or payee

c) Payment transactions made by collecting and delivering money in cash within the framework of non-profit or charitable activities

ç) Services where, at the explicit request of the payment service user immediately before the execution of a payment transaction arising from the purchase of goods or services, cash is provided to the payee from the payer as part of the transaction

d) Foreign exchange purchase and sale transactions carried out in cash without being linked to a payment account

e) Payment transactions carried out with any of the negotiable instruments, foreign bank checks, traveller's checks and paper postal money orders within the scope of Law No. 6102

f) Payment transactions carried out in systems between the Bank, the settlement institution, the central counterparty, clearing houses, payment service providers and other participants of the system on their own behalf and account

g) Payment transactions related to the capital market activities of the legal entities specified under subparagraph (f) of this paragraph and capital market institutions within the scope of the Capital Markets Law dated 6/12/2012 and numbered 6362

ğ) Services offered by technical service providers that support the execution of provisioning transactions in payment services, covering the processing, storage, security, protection of confidentiality and verification of data, as well as the supply and maintenance of information technology, communication networks and tools used for payment services, where the technical service provider is not the owner of the transferred funds at any stage of the transaction

h) Transactions related to instruments that can be used only at the business premises of the issuer of the payment instrument, within a limited service provider network, or for the purchase of goods or services within the framework of a commercial agreement with the issuer of the payment instrument for a limited range of goods or services

ı) Payment transactions carried out through an information technology or electronic communication device, where the information technology or electronic communication operator does not act solely as an intermediary between the payment service user and the goods or services provider, and the purchased goods or services are transferred to the information technology or electronic communication device and used through that device

i) Payment transactions made between payment service providers and their agents or branches on their own

behalf and account

j) Payment services carried out between the parent company and its subsidiaries or between subsidiaries themselves, and where no payment service provider other than a company belonging to the same group acts as an intermediary

k) Cash withdrawal services through ATMs operated by a service provider that does not offer any payment services and is not a party to a framework contract with the customer withdrawing money from a payment account, and that operates on behalf of one or more card-issuing institutions

l) Other transactions and services to be determined by the Bank1

(3) (Amended:12/11/2019-7192/8 md.) The procedures and principles regarding payment services, the rights and obligations of the parties within the scope of payment services, the information and conditions to be provided regarding the payment service, and the framework contract shall be determined by a regulation to be issued by the Bank, after obtaining the opinion of the Financial Crimes Investigation Board. (Additional sentence:18/6/2020-7247/16 md.) The framework contract shall be concluded in writing or remotely using distance communication tools, or, whether distance or not, through methods that the Bank determines can substitute for written form and that will be carried out over an information technology or electronic communication device and allow the verification of customer identity through biometric methods or identity documents with electronic identity verification capability.2

(4) (Added:12/11/2019-7192/8 md.) The Bank is authorized to determine the nature and maximum amount or rates of fees, expenses, commissions and other benefits received by one of the parties to the transaction under any name for a specific type of transaction within the scope of payment services, and to partially or completely liberalize them.

(5) (Added:12/11/2019-7192/8 md.) The Bank may decide that the transactions specified in subparagraphs (b) and (h) of the second paragraph shall be considered as payment services within the scope of this Law if they reach a level to be determined by the Bank in terms of total size and area of effect.

(6) (Added:12/11/2019-7192/8 md.) The legal relationships to which payment service providers are parties due to their activities subject to this Law shall be monitored by the Bank. If the Bank determines that there are practices that may negatively affect the development of the payments field within the scope of the legal relationships to which payment service providers are parties due to their activities subject to this Law, it is authorized to determine the procedures and principles to be complied with regarding the legal relationships to which payment service providers are parties due to their activities subject to this Law.

(7) (Added:12/11/2019-7192/8 md.) If the Bank determines that there are situations and practices that may negatively affect the development of the payments field within the scope of activities subject to this Law,

[1] By Article 8 of Law No. 7192 dated 12/11/2019, the phrase “by the Board” in this subparagraph has been changed to “by the Bank”.

[2] By Article 33 of Law No. 7571 dated 24/12/2025, the phrase “biometric methods or identity documents with electronic identity verification capability” has been added to this paragraph after the phrase “customer identity”.

it is authorized to establish working committees on the subject, to determine the working procedures and principles of these committees by obtaining the opinions of the relevant parties, and to carry out the necessary work and transactions for the implementation of the decisions taken in these committees.

Payment service provider

ARTICLE 13 – (1) In accordance with this Law;

a) Banks within the scope of Law No. 5411,

b) Electronic money institutions,

c) Payment institutions,

ç) (Added: 17/4/2017-KHK/690-68 md.; Accepted as is: 1/2/2018-7077/58 md.) Posta ve Telgraf Teşkilatı Anonim Şirketi is a payment service provider.

(2) Persons other than banks and payment service providers cannot offer payment services.

Payment institution3

ARTICLE 14 – (1) A payment institution that wishes to engage in payment services within the scope of this Law may engage in activity provided that it obtains permission from the Bank.

(2) The payment institution's;

a) Being established in the form of a joint-stock company,

b) Those holding ten percent or more of its capital and those controlling it possessing the qualifications required for bank founders under Law No. 5411,

c) Its shares being issued for cash and all of them being registered,

ç) Its paid-in capital in cash and free from any kind of collusion being at least one million Turkish Liras for payment institutions providing the services set out in subparagraph (e) of the first paragraph of Article 12 of this Law, and at least two million Turkish Liras for other payment institutions,

d) Having the management, sufficient personnel and technical equipment capable of carrying out the transactions within the scope of this Law and establishing units related to complaints and objections,

e) Taking the necessary measures regarding the continuity of the activities they will carry out within the scope of this Law and the security and confidentiality of funds and information relating to payment service users,

f) Having a transparent and open partnership structure and organizational chart that will not prevent the Bank's supervision,

is required.

(3) A payment institution may hold a payment account while providing payment services, provided that it is used solely for the payment transaction. Funds received by payment and electronic money institutions in relation to payment services are not considered as deposits or participation funds under Article 60 of Law No. 5411 or as electronic money within the scope of this Law.

[3] By subparagraph (a) of Article 17 of Law No. 7192 dated 12/11/2019, the phrase “Kuruldan” in the first paragraph of this article was amended to “Bankadan”, the phrase “Kurumun” in subparagraph (f) of its second paragraph was amended to “Bankanın”, the phrase “Kurumca” in its fourth paragraph was amended to “Bankaca”, the phrase “Kurul” in its fifth paragraph was amended to “Banka”, and the phrase “Mali Suçları Araştırma Kurulu ve Bankanın görüşünün alınması suretiyle Kurumca” in its sixth paragraph was amended to “Mali Suçları Araştırma Kurulunun görüşünün alınması suretiyle Bankaca”.

(4) A payment institution cannot engage in lending activity. Whether the activities carried out in relation to payment services fall within the scope of lending activity is determined by a regulation to be issued by the Bank.

(5) The Bank is authorized to determine the activities that cannot be carried out by a payment institution.

(6) The procedures and principles regarding the implementation of this article, the information and documents to be requested regarding the establishment of the payment institution, its operation, capital and equity structure, use of branches, representatives or external service providers, corporate governance principles, internal systems, information systems management and other activities not within the scope of this Law are determined by a regulation to be issued by the Bank upon obtaining the opinion of the Financial Crimes Investigation Board.

Payment services with special characteristics

ARTICLE 14/A- (Added: 12/11/2019-7192/9 md.)

(1) For payment institutions providing exclusively the service set out in subparagraph (g) of the first paragraph of Article 12, the issuance of shares for cash, all of them being registered, and the minimum capital obligation stipulated in this Law shall not be required.

(2) The Bank is authorized to determine all kinds of procedures and principles regarding the sharing of data in a payment service provider with another payment service provider within the scope of the activities set out in subparagraphs (f) and (g) of the first paragraph of Article 12.

Evaluation of the activity permit application4

ARTICLE 15 – (1) If the conditions, qualifications and competencies required within the scope of this Law are met, the information and documents requested by the Bank are completed fully, and the Bank decides that the said application is positive, permission is granted to engage in activity as a payment institution within the scope of Article 14 of this Law, and the decision regarding the granting of the activity permit is published in the Official Gazette.

(2) (Repealed: 12/11/2019-7192/17 md.)

(3) If the payment institution operates in areas other than payment services and these activities adversely affect or may adversely affect the financial situation of the payment institution or the Bank's monitoring of the payment institution's compliance with the provisions of this Law and the regulations to be issued pursuant to this Law, the Bank may request the establishment of a separate institution for payment services.

(4) The permit application made to the Bank within the scope of Article 14 of this Law is concluded by the Bank within six months following the complete submission of the information and documents requested regarding the application. If the decision is negative, it is notified to the relevant parties together with its reasons.

(5) The institution granted an activity permit shall notify the Bank that it has started activity within ten days from the date it starts activity.

[4] By subparagraph (b) of Article 17 of Law No. 7192 dated 12/11/2019, the phrase “Kurulca” in the first paragraph of this article was amended to “Bankaca”, the phrases “Kurul” in its first, third and fourth paragraphs were amended to “Banka”, the phrase “Kurumun” in its third paragraph was amended to “Bankanın”, the phrases “Kuruma” in its fourth and fifth paragraphs were amended to “Bankaya”; its second paragraph has been repealed.

Revocation of activity permit

ARTICLE 16 – (1) The Bank may revoke the activity permit granted to a payment institution;5

a) If the use of this authorization is not started within one year from the receipt of the activity permit,

b) If the payment institution notifies the Bank that it explicitly waives this authorization or has ceased its activities,

c) If it is determined that the activity permit was obtained with false statements and documents,

ç) If it is determined that the payment institution has lost the conditions specified in Article 14 of this Law,

d) If the third paragraph of Article 23 of this Law is violated,

e) If the Bank concludes that the continuation of the payment institution's activities threatens the security of payments,

in such cases.

(2) The Bank notifies the relevant payment institution of the revocation of the activity permit together with its reasons.

(3) The Bank shall publish the revocation of the operating permission in the Official Gazette. The publication of the revocation decision in the Official Gazette shall be deemed as notification to the relevant parties.

Termination of operating permission

ARTICLE 17 – (1) Apart from the situations specified in the first paragraph of Article 16 of this Law, the operating permission of the payment institution;

a) In transactions that change the legal structure of the payment institution such as merger or division, in the event that the legal personality of the payment institution terminates, on the date the legal personality terminates,

b) In the event that the payment institution terminates in accordance with Articles 529, 530 and 531 of Law No. 6102,

c) In the event that the payment institution has not been engaged in activity for more than six months within one year after commencing operations, upon the expiry of the six-month period,

shall terminate automatically on that date.

(2) Upon notification to the Bank by the payment institution of the situations regulated in the first paragraph in accordance with the third paragraph of Article 23 of this Law or upon determination of these situations, the Bank shall publish in the Official Gazette that the operating permission has terminated.6

[5] By subparagraph (c) of Article 17 of Law No. 7192 dated 12/11/2019, the terms “Kurul” in the first paragraph of this article were changed to “Banka”, the term “Kuruma” in subparagraph (b) of the paragraph was changed to “Bankaya”, the terms “Kurum” in the second and third paragraphs were changed to “Banka”; the phrase “en az beş üyesinin aynı yöndeki oyuyla alınan kararla” in the first paragraph of the article and the phrase “ve Bankaya” in the second paragraph were removed from the text of the article.

[6] By Article 17 of Law No. 7192 dated 12/11/2019, the term “Kuruma” in this paragraph was changed to “Bankaya”, the term “Kurum” was changed to “Banka” and the phrase “Bankaya bildirir ve” was removed from the text of the article

PART FIVE

Electronic Money Institutions and Issuance of Electronic Money

Institutions issuing electronic money7

ARTICLE 18 – (1) It is prohibited for persons other than banks operating in accordance with Law No. 5411, Posta ve Telgraf Teşkilatı Anonim Şirketi and electronic money institutions granted permission to issue electronic money within the scope of this Law to engage in electronic money issuance activities.8

(2) An electronic money institution wishing to issue electronic money within the scope of this Law may operate provided that it obtains permission from the Bank.

(3) For the electronic money institution;

a) To be established as a joint-stock company,

b) For those holding ten percent or more of its capital and those controlling it to possess the qualifications required for bank founders in Law No. 5411,

c) For its shares to be issued for cash and all of them to be registered,

ç) For its paid-in capital in cash and free from all kinds of collusion to be at least five million Turkish Liras,

d) To have the management, sufficient personnel and technical equipment capable of performing the transactions within the scope of this Law, and to establish units related to complaints and objections,

e) To take the necessary measures regarding the continuity of the activities to be carried out within the scope of this Law and the security and confidentiality of funds and information related to electronic money users,

f) To have a transparent and open partnership structure and organizational chart that will not prevent the Bank's supervision,

is required.

(4) Electronic money institutions shall carry out their activities through banks as defined in Law No. 5411.

(5) (Amended:12/11/2019-7192/10 md.) Prepaid instruments that can be used by the institution issuing electronic money only in its own store network, only for the purchase of a specific group of goods or services, or only in a specific service network as a result of an agreement are outside the scope of this Law. The Bank may decide that the transactions made with the payment instruments mentioned in this paragraph be evaluated within the scope of this Law in the event that they reach a level to be determined by the Bank in terms of total size and sphere of influence.

(6) (Amended:12/11/2019-7192/10 md.) The procedures and principles regarding the implementation of this article, the information and documents to be requested regarding the establishment of the electronic money institution, its operation, capital and equity structure, use of branches, representatives or external service providers, corporate governance principles, internal systems, information systems management and other

[7] By Article 10 of Law No. 7192 dated 12/11/2019, the term “Kuruldan” in the second paragraph was changed to “Bankadan” and the term “Kurumun” in subparagraph (f) of the third paragraph was changed to “Bankanın”.

[8] By Article 69 of Decree Law No. 690 dated 17/4/2017, the phrase “, Posta ve Telgraf Teşkilatı Anonim Şirketi” was added after the term “banks” in this paragraph, and subsequently this provision was accepted as is by Article 59 of Law No. 7077 dated 1/2/2018 and enacted into law.

activities not covered by this Law, and the procedures and principles regarding the issuance and redemption of electronic money shall be determined by a regulation to be issued by the Bank after obtaining the opinion of the Financial Crimes Investigation Board.

Other provisions applicable to electronic money institutions

ARTICLE 19 – (1) The provisions in Articles 15, 16 and 17 of this Law shall also apply to electronic money institutions.

Issuance of electronic money

ARTICLE 20 – (1) The institution issuing electronic money shall issue electronic money equivalent to the funds it receives.

(2) The institution issuing electronic money shall convert the funds deposited by the electronic money user into electronic money without delay and make them ready for use.

(3) (Amended:12/11/2019-7192/11 md.) The electronic money institution shall transfer the funds collected in return for electronic money issuance to a separate account to be opened with banks as defined in Law No. 5411. The procedures and principles regarding the implementation of this paragraph shall be determined by the Bank.

(4) The electronic money institution cannot engage in lending activities. (Additional sentence:12/11/2019-7192/11 md.) Whether the activities carried out by the electronic money institution related to payment services fall within the scope of lending activities shall be determined by a regulation to be issued by the Bank.

(5) An electronic money institution cannot pay interest to the electronic money holder or provide any benefit based on the duration for which the electronic money is held.

(6) The Bank is authorized to determine other activities that cannot be performed by an electronic money institution.9

(7) Funds received by electronic money institutions in return for electronic money issuance are not considered as deposits or participation funds according to Article 60 of Law No. 5411.

PART SIX Other Provisions

Audit

ARTICLE 21 – (Amended: 12/11/2019-7192/12 md.) (1) The audit of banks within the scope of Law No. 5411, payment institutions and electronic money institutions, and the Post and Telegraph Organization Joint Stock Company within the scope of this Law shall be performed by the Bank.

(2) The Bank is authorized to conduct audits at the branches, representatives, or external service providers of the institutions specified in the first paragraph.

[9] With Article 11 of Law No. 7192 dated 12/11/2019, the phrase “Board” in this paragraph has been changed to “Bank”.

(3) The institutions specified in the first paragraph and other relevant real and legal persons are obliged to provide all kinds of information and documents requested by the Bank's personnel authorized to conduct on-site audits, to present their books and documents, and to keep them ready for examination.

(4) The Bank may request records, information, and documents related to all transactions carried out by the institutions it is responsible for auditing within the scope of this article, on an instant and transaction basis, when it deems necessary. The institutions subject to audit within the scope of this article are obliged to submit all kinds of records, information, and documents, even if confidential, to the Bank within the framework of the procedures and principles to be determined by the Bank, and to make them ready for the Bank's audit.

(5) Public institutions and organizations are obliged to provide all kinds of information and documents requested by the Bank, even if confidential, limited to the duties assigned under this Law, in an appropriate time and environment, continuously or individually, without regard to prohibitive and restrictive provisions in special laws, except for cases that would cause severe consequences against the security of the State and fundamental foreign interests, and provisions related to professional secrecy, confidentiality of family life, confidentiality of investigation, and right of defense.

(6) Payment and electronic money institutions are subject to independent audit. The financial independent audit of payment and electronic money institutions shall be conducted within the framework of the Decree Law No. 660 on the Organization and Duties of the Public Oversight, Accounting and Auditing Standards Authority dated 26/9/2011. The information systems audit of payment and electronic money institutions to be carried out by independent audit institutions shall be performed within the framework of the procedures and principles determined by the Bank.

(7) The Bank, if it deems necessary, is authorized to determine additional conditions for those who will engage in independent audit activities under this Law from independent audit institutions authorized by the Public Oversight, Accounting and Auditing Standards Authority, and to disclose the list of independent audit institutions that meet these conditions to the public. If the Bank determines additional conditions for those who will engage in independent audit activities under this Law, it is authorized to remove from the list those independent audit institutions that are found to be in violation of standards and legislation as a result of quality control and audit work related to their independent audit activities within the scope of this Law. The Bank shall notify the Public Oversight, Accounting and Auditing Standards Authority of the results of the quality control and audit work it conducts. Other procedures and principles regarding the audit work to be carried out by independent audit institutions within the scope of this article shall be determined by the Bank.

(8) The Bank is authorized to request the necessary measures to be taken regarding the issues identified in relation to payment institutions and electronic money institutions, to grant a reasonable period not exceeding six months for the measures to be taken, to temporarily suspend the operation permit of the payment institution and electronic money institution until the necessary measures are taken within this period, and to revoke the operation permit if the relevant measures are not taken within the specified period.

(9) Other procedures and principles regarding the audit of the institutions specified in the first paragraph shall be determined by a regulation to be issued by the Bank.

(10) The Bank may, when it deems necessary, request that the information systems of banks within the scope of Law No. 5411 be audited by independent audit institutions in relation to their activities within the scope of this Law.

(11) The Bank is authorized to request the necessary measures to be taken regarding the issues identified in relation to banks within the scope of Law No. 5411 and the Post and Telegraph Organization Joint Stock Company, to grant a reasonable period not exceeding six months for the measures to be taken, to temporarily suspend the relevant institution's payment service provision or electronic money issuance activity until the necessary measures are taken within this period, and to suspend these activities indefinitely if the relevant measures are not taken within the specified period.

(12) The measures to be applied by the Bank within the scope of this Law regarding banks within the scope of Law No. 5411 and the issues requiring measures shall be shared with the Authority.

Protection of funds and collateral10

ARTICLE 22 – (1) Funds received by a payment institution for the purpose of performing payment services and funds collected by an electronic money institution in return for electronic money issuance shall be protected within the framework of the procedures and principles to be determined by a regulation to be issued by the Bank.

(2) The Bank may impose an obligation on payment and electronic money institutions within the scope of this Law to maintain collateral with the Bank in accordance with the procedures and principles it will determine.

(3) Funds accepted by payment and electronic money institutions and the accounts in which these funds are held shall be used to compensate the rights of fund owners and to fulfill the obligations arising from this Law, regardless of the priorities specified in other laws, in the event that the payment or electronic money institution is subject to voluntary or compulsory liquidation, or its operating license is revoked. Payment and electronic money institutions are responsible for compensating the rights of fund owners.

(4) The Bank may impose an obligation on system operators within the scope of this Law to hold collateral with it in accordance with the procedures and principles it shall determine.

Storage of documents and records, protection of personal information, notification of changes11

ARTICLE 23 – (1) (Amended: 27/3/2015-6637/13 md.) The system operator, payment institution and electronic money institution shall store the documents and records related to the matters covered by this Law for at least ten years in a secure manner within the country, allowing access at any time. The information systems used by the system operator in carrying out its activities and their backups shall also be kept within the country. In carrying out the activities of the payment institution and electronic money institution

[10] By Article 17 of Law No. 7192 dated 12/11/2019, the phrase “Kurumca” in the first paragraph was changed to “Bankaca” and the phrase “Kurul” in the second paragraph was changed to “Banka”.

[11] By Article 17 of Law No. 7192 dated 12/11/2019, the phrase “Kurulca” in the third sentence of the first paragraph was changed to “Bankaca”; the phrase “İlgili otorite” in the third paragraph was changed to “Banka” and the phrase “sistem işleticisi Bankayı; ödeme kuruluşu ve elektronik para kuruluşu ise Kurumu” was changed to “sistem işleticisi, ödeme kuruluşu ve elektronik para kuruluşu Bankayı”.

the procedures and principles regarding the information systems they use shall be determined by the Bank. (2) In necessary cases to prevent, investigate and detect payment irregularities, the system operator and payment service provider shall use personal information by taking the necessary measures regarding the protection of personal data. (3) In the event of any change that may affect the validity of the information and documents requested by the Bank, the system operator, payment institution and electronic money institution shall immediately inform the Bank on this matter.

Exemptions and exceptions

ARTICLE 24 – (1) The provisions of this Law shall not apply to matters contained in the Bank Cards and Credit Cards Law No. 5464 dated 23/2/2006 and the regulations made pursuant to Law No. 5464 regarding bank and credit cards. (2) Payment systems related to bank and credit cards are outside the scope of the first paragraph. (3) The powers of the Capital Markets Board and the Board arising from other legislation regarding systems are reserved. (4) (Amended: 17/4/2017-KHK/690-71 md.; Accepted as is: 1/2/2018-7077/61 md.) Posta ve Telgraf Teşkilatı Anonim Şirketi is not subject to the provisions of the first and second paragraphs of Article 14 and the second and third paragraphs of Article 18 of this Law. The procedures and principles regarding the application of other provisions of this Law to Posta ve Telgraf Teşkilatı Anonim Şirketi shall be determined by the Bank. The Bank may temporarily or permanently suspend the activities of Posta ve Telgraf Teşkilatı Anonim Şirketi in providing payment services or issuing electronic money within the scope of this Law, as a result of the audit to be conducted by the Bank within the scope of this Law.12

Notification of share acquisitions and transfers and changes13

ARTICLE 25 – (1) Acquisitions of shares representing ten percent or more of the capital directly or indirectly through shareholding, or share acquisitions resulting in the direct or indirect shares of a partner exceeding ten percent, twenty percent, thirty-three percent or fifty percent of the capital, and share transfers resulting in the shares of a partner falling below these rates, are subject to the permission of the Bank. The establishment and termination of usufruct rights including voting rights shall be considered as acquisition and transfer within the rate specified in this paragraph. (2) Shares granting the privilege to determine members of the board of directors or the audit committee

[12] By Article 17 of Law No. 7192 dated 12/11/2019, the phrases “Kurulca” and “Kurumca” in this paragraph were changed to “Bankaca” and the phrase “Kurul” was changed to “Banka”.

[13] By Article 17 of Law No. 7192 dated 12/11/2019, the phrases “Kurulun” in the first, second and third paragraphs were changed to “Bankanın”, the phrase “Kurumca” in the sixth paragraph was changed to “Bankaca”; the phrases “sistem işleticisi için Bankanın; ödeme kuruluşu ve elektronik para kuruluşu için ise” in the first and second paragraphs, the phrase “sistem işleticileri için Bankanın; ödeme ve elektronik para kuruluşları için” in the third paragraph and the phrase “sistem işleticileri için Bankaca; ödeme ve elektronik para kuruluşları için” in the sixth paragraph were removed from the text of the article.

their establishment, transfer or issuance of new privileged shares shall be subject to the permission of the Bank, regardless of the proportional limits in the first paragraph.

(3) Share transfers resulting in the change of control of legal entities holding ten percent or more shares in the incorporation capital shall be subject to the permission of the Bank.

(4) In share transfers subject to permission, the persons acquiring the shares must possess the qualifications required for bank founders under Law No. 5411.

(5) Share transfers subject to permission but made without obtaining permission cannot be registered in the share ledger. Registrations made in the share ledger contrary to this provision shall be invalid.

(6) The procedures and principles regarding the application of this article shall be determined by a regulation to be issued by the Bank.

Inter-institutional cooperation

ARTICLE 26 – (1) (Amended: 12/11/2019-7192/13 md.) On matters regarding the application of the provisions of this Law related to payment and electronic money institutions and regarding the activities of banks within the scope of Law No. 5411 subject to this Law, the Bank and the Institution shall exchange opinions or information.

(2) (Amended: 12/11/2019-7192/13 md.) The Institution, upon the request of the Bank, shares the information in its databases with the Bank within the framework of confidentiality provisions for the purpose of performing the duties specified in this Law.

(3) The procedures and principles regarding cooperation with domestic and foreign competent authorities on supervision, information sharing and other matters shall be determined by the Bank, taking the opinion of the relevant parties.14

CHAPTER SEVEN Sanctions, Investigation and Prosecution Procedure

Failure to comply with regulations and decisions

ARTICLE 27 – (1) (Amended first and second sentences: 12/11/2019-7192/14 md.) Legal entities operating as system operators or payment service providers that act contrary to the matters set out in this Law and in the regulations to be issued based on this Law and in the decisions taken, and for which no separate criminal sanction is provided in this Chapter, shall be imposed an administrative fine by the Bank's Management Committee from forty thousand Turkish liras to nine hundred thousand Turkish liras. However, if a benefit has been obtained or damage has been caused in this way, the amount of the administrative fine to be imposed cannot be less than twice that benefit or the damage caused. If one of these misdemeanors is committed more than once until an administrative sanction decision is rendered, one administrative fine shall be imposed on the relevant person and the fine to be imposed shall be increased by two times. However, if a benefit is obtained or damage is caused by committing this misdemeanor, the amount of the administrative fine cannot be less than three times that benefit or damage.

[14] By Article 13 of Law No. 7192 dated 12/11/2019, the phrase “by the Bank for system operators; by the Board for payment and electronic money institutions” in this paragraph has been amended to “by the Bank”.

(2) The decisions taken within the scope of the first paragraph shall be notified to the relevant institution together with their reasons.

(3) The administrative fine shall be decided after the defense of the relevant person is taken. If no defense is submitted within one month from the date of notification of the letter requesting defense, it shall be deemed that the right to defense has been waived.

(4) Administrative fines imposed under this Law shall be paid within one month from the date of notification of the decision.

(5) (Added: 12/11/2019-7192/14 md.) An action may be filed before the competent administrative court against the administrative fines to be imposed pursuant to this article.

Engaging in activity without permission

ARTICLE 28 – (1) Real persons and officials of legal entities operating as system operators, payment institutions or electronic money institutions without obtaining the permissions required under this Law shall be punished with imprisonment from one year to three years and a judicial fine up to five thousand days.

(2) Real persons and officials of legal entities who, without obtaining the permissions required under this Law, use words and expressions in their trade names, in all kinds of documents, announcements and advertisements, or in statements made to the public, that create the impression that they are operating as a system operator, payment institution or electronic money institution shall be punished with imprisonment from one year to three years and a judicial fine up to five thousand days.

(3) If the offenses defined within the scope of the first and second paragraphs are committed within the body of a workplace, it may be decided to close this workplace for two months to six months, and permanently in case of repetition.

(4) The provisions of this article shall also apply in the event that a system operator, payment institution or electronic money institution whose operating permission granted within the scope of this Law has been revoked continues its activity.

Obstructing audit and supervision activities and failing to provide requested information15

ARTICLE 29 – (1) A person who obstructs the performance of the audit and supervision duties carried out by the Bank pursuant to this Law shall be punished with imprisonment from one year to three years.

(2) A person who fails to provide the information and documents requested within the scope of the audit and supervision activities carried out by the Bank pursuant to this Law shall be punished with imprisonment from three months to one year and a judicial fine up to one thousand five hundred days.

Making false statements

ARTICLE 30 – (1) Due to false statements in the documents they give or publish to the authorities and courts and to the officials carrying out audit and supervision activities of the system operator, payment institution and electronic money institution within the scope of this Law

[15] By Article 17 of Law No. 7192 dated 12/11/2019, the phrases “and the Institution” in the first and second paragraphs have been removed from the text of the article.

the person or persons signing these documents shall be punished with imprisonment from one year to three years and a judicial fine up to two thousand days.

Acting contrary to the obligation to preserve documents and information security

ARTICLE 31 – (1) Those who fail to comply with the obligation specified in the first paragraph of Article 23 of this Law shall be punished with imprisonment from one year to three years and a judicial fine from five hundred days to one thousand five hundred days.

(2) Without prejudice to the obligations of the payment service user regarding the payment instrument, officials of institutions and persons carrying out the transaction who fail to take the necessary measures to prevent third parties other than those authorized to use the payment instrument from accessing personal security information related to the payment instrument, and who fail to ensure that the payment instrument and personal security information related to the payment instrument are delivered securely to the payment service user, shall be punished with imprisonment from one year to three years and a judicial fine up to one thousand days.

(3) If the offense defined in the second paragraph of this article is committed due to carelessness or imprudence or inadequacy in the profession, the officials of the relevant institutions and the persons carrying out the transaction shall be punished with a judicial fine up to one thousand days.

Disclosure of secrets

ARTICLE 32 – (1) In the event that the shareholders, board of directors members, personnel, persons acting on their behalf, and officers of the system operator, payment institution, and electronic money institution within the scope of this Law disclose the secrets belonging to these institutions and their customers, which they have learned due to their title and duties, even if they have left their duties, to anyone other than the authorities explicitly authorized by law, they shall be punished with imprisonment from one year to three years and a judicial fine up to one thousand days.

(2) The provisions of the first paragraph shall also apply to the employees of the external service provider and third parties who disclose the secrets belonging to the institutions and their customers listed in the first paragraph.

Defamation

ARTICLE 33 – (1) Those who intentionally cause an issue that may harm the reputation of the system operator, payment institution, and electronic money institution within the scope of this Law or damage their fame or property, or those who spread false news through this means, through the tools specified in the Press Law dated 9/6/2004 and numbered 5187, or through radio, television, video, internet, cable broadcasting or electronic information communication tools and similar broadcasting tools, shall be punished with imprisonment from one year to three years and a judicial fine from one thousand days to two thousand days.

Criminal liability of officers and relevant persons of electronic money institutions

ARTICLE 34 – (1) The officers and relevant persons of the electronic money institution who act contrary to the provisions in the fourth paragraph of Article 18 and Article 20 of this Law shall be punished with imprisonment from one year to three years and a judicial fine up to five thousand days.

Keeping transactions off the records and false accounting

ARTICLE 35 – (1) Due to keeping the transactions of the payment institution and electronic money institution within the scope of this Law off the records, and accounting them in a manner not conforming to their true nature, the person or persons who sign these documents shall be punished with imprisonment from one year to three years and a judicial fine up to two thousand days.

Embezzlement

ARTICLE 36 – (1) The shareholders, board of directors chairman and members, personnel, persons acting on their behalf, and officers of the system operator, payment institution, and electronic money institution within the scope of this Law who embezzle for themselves or others the money and documents or deeds representing money or other goods that have been entrusted to their possession due to their duty or that they are obliged to protect and supervise, shall be punished with imprisonment from six years to twelve years and a judicial fine up to five thousand days, and shall also be sentenced to compensate the damage suffered by the relevant institution.

(2) In the event that the offense is committed with fraudulent behaviors aimed at ensuring that the embezzlement does not come to light, the perpetrator shall be given imprisonment of not less than twelve years and a judicial fine up to twenty thousand days; however, the amount of the judicial fine cannot be less than three times the damage suffered by the relevant institution. Furthermore, in the event that the resulting damage is not paid, the court shall ex officio order its payment.

(3) In the event that the embezzled money or documents or deeds representing money or other goods are returned in kind or the damage suffered is fully compensated before the investigation begins, two-thirds of the penalty to be imposed shall be reduced. In the event that the embezzled money or documents or deeds representing money or other goods are returned in kind or the damage suffered is fully compensated voluntarily before the prosecution begins, half of the penalty to be imposed shall be reduced. In the event that this situation occurs before the judgment, one-third of the penalty to be imposed shall be reduced.

(4) Due to the low value of the money or documents or deeds representing money or other goods that constitute the subject of the embezzlement offense, the penalty to be imposed shall be reduced from one-third to one-half.

Investigation and prosecution procedure

ARTICLE 37 – (1) The conduct of investigation and prosecution regarding the offenses specified in Articles 28, 29, and 31 of this Law depends on the Bank making a written application to the Chief Public Prosecutor's Office. This application is of the nature of a condition for prosecution.16

(2) In the event that the relevant persons apply to the Chief Public Prosecutor's Office due to the offense specified in Article 31 of this Law,

[16] With Article 17 of the Law dated 12/11/2019 and numbered 7192, the phrase “Kurum” in this paragraph was changed to “Banka” and the phrase “sistem işleticileri ile ilgili olarak Banka; ödeme ve elektronik para kuruluşları ile ilgili olarak ise” was removed from the article text.

the written application condition is not sought. (3) The conduct of investigation and prosecution regarding the Bank personnel due to their acts during the performance of the duties specified in this Law and the regulations to be issued based on this Law depends on the Bank making a written application to the Chief Public Prosecutor's Office.

ARTICLE 38 – 39 – (Related to the Central Bank of the Republic of Turkey Law dated 14/1/1970 and numbered 1211 and incorporated therein.)

ARTICLE 40 – 41 – (Related to the Banking Law dated 19/10/2005 and numbered 5411 and incorporated therein.)

PART EIGHT Temporary and Final Provisions

Union of Payment and Electronic Money Institutions of Turkey PROVISIONAL ARTICLE 1- (Added:12/11/2019-7192/15 md.)

(1) Payment institutions and electronic money institutions are obliged to apply to become a member of the Union of Payment and Electronic Money Institutions of Turkey, which is a professional organization having legal personality and the nature of a public institution, within one month from the date they receive an operating license.

(2) The Union;

a) To engage in training, promotion, and research activities in order to ensure the development of the profession,

b) To ensure that members work in accordance with the needs of the economy within the discipline and unity required by the profession by determining professional principles,

c) To determine the professional principles and standards that the members of the member institutions shall comply with,

ç) To announce to its members the decisions taken in accordance with the relevant legislation and the measures requested to be taken by the Bank,

d) To take and implement all kinds of necessary measures to prevent unfair competition among its members,

e) To determine the principles and conditions that members shall comply with in their announcements and advertisements in terms of type, form, quality, and quantity,

f) To file lawsuits based on the decision of the board of directors on matters concerning the common interests of the members,

g) To ensure cooperation among members regarding joint projects,

ğ) To establish an arbitration committee in accordance with the procedures and principles to be prepared by it and approved by the Bank, in order to ensure the evaluation and resolution of disputes between members and their individual customers, without prejudice to the application rights granted by the provisions of the Law No. 6502 on the Protection of Consumers dated 7/11/2013 and other laws,

h) To perform other duties listed in this Law,

is tasked and authorized.

(3) Union organ elections shall be held by secret ballot and under judicial supervision within the framework of the principles set forth in this Law. At least fifteen days before the general assembly meeting at which elections will be held, a list determining the members and representatives who will participate in the elections, together with a letter specifying the agenda, place, date, time of the meeting and the matters regarding the second meeting to be held if there is no quorum, shall be submitted in three copies to the judge who is the president of the election board to be determined by the Supreme Election Council. The judge shall conduct the necessary examination, approve the list and other matters, and appoint a ballot box committee chairman and two ballot box committee members, as well as one substitute member for each. Voting shall be conducted according to the principles of secret ballot and open counting. At the end of the election period, the election results shall be recorded in a minutes and signed by the chairman and members of the ballot box committee. Within two days from the preparation of the minutes, any objections to the elections shall be examined by the judge on the same day and decided definitively.

(4) The organs, revenues, expenses, working principles and scope of activities of the Union, the principles of admission to membership, temporary and permanent removal from membership shall be regulated by the statute. This statute shall be put into effect by a Presidential decision upon the proposal to be made by the Bank after taking the opinions of sector representatives. Members are obliged to comply with the statute of the Union and the decisions and measures to be taken by the Union. The expenses of the Union shall be distributed to the members according to the number of votes determined in accordance with the statute. Members are obliged to pay their expense shares within the period specified in the statute. If the expense participation shares are not paid within the specified period, they shall be collected by the Union through execution proceedings. Decisions regarding the payment of expense participation shares have the nature of an official document as written in Article 68 of the Execution and Bankruptcy Law No. 2004 dated 9/6/1932.

(5) The Union shall impose an administrative fine of one thousand Turkish liras to ten thousand Turkish liras on members who do not comply with the decisions and measures of a general or special nature taken by it in a timely and complete manner.

Regulation

PROVISIONAL ARTICLE 1 – (1) The regulations provided for in this Law shall be prepared and put into effect within one year from the date of publication of this Law.

Transitional provisions

PROVISIONAL ARTICLE 2 – (1) System operators operating as of the date this Law enters into force shall bring their systems into compliance with this Law within one year from the date of publication of the relevant regulation to be issued by the Bank under this Law and apply to the Bank to obtain the necessary permits.

(2) Institutions that are providing payment services as of the date this Law enters into force and that can be included in the payment institution category created under this Law shall apply to the Authority and obtain the necessary permits within one year starting from the date of publication of the relevant regulations to be issued by the Authority under this Law.

(3) Institutions that are issuing electronic money as of the date this Law enters into force and that can be included in the electronic money institution category created under this Law shall apply to the Authority and obtain the necessary permits within one year starting from the date of publication of the relevant regulations to be issued by the Authority under this Law.

(4) Institutions that are obliged to obtain permission from the Authority pursuant to the provisions of the second and third paragraphs, as well as payment service providers other than these, shall bring their practices into compliance with the provisions of this Law and the regulations to be issued based on this Law within one year starting from the date of publication of the relevant regulations to be issued by the Authority under this Law.

(5) Institutions that are required to obtain an operating permit within the periods specified in the first, second and third paragraphs of this article shall not be able to operate under this Law if they fail to obtain the said permit.

Transitional provisions regarding existing regulations

PROVISIONAL ARTICLE 3- (Added:12/11/2019-7192/16 md.)

(1) Until the Bank makes regulations in accordance with the amendments made by the Law that created this article, the Authority regulations and Board decisions issued before the date this article entered into force shall continue to be applied.

(2) References made to the Authority and the Board in the Authority regulations issued before the date this article entered into force pursuant to this Law shall be deemed to have been made to the Bank.

(3) Institutions that are providing the payment services specified in subparagraphs (f) and (g) of the first paragraph of Article 12 of this Law as of the date this article enters into force and that can be included in the payment institution category created under this Law shall apply to the Bank and obtain the necessary permits within one year starting from the date of publication of the relevant regulations to be issued by the Bank under this Law.

(4) Payment institutions and electronic money institutions operating before the date this article entered into force shall become members of the Union within one month following the date the Union becomes operational.

(5) Regulations in accordance with the amendments made by the Law that created this article shall be prepared and put into effect within one year from the date this article entered into force.

Entry into force

ARTICLE 42 – (1) This Law shall enter into force on the date of its publication.

Execution

ARTICLE 43 – (1) The Council of Ministers shall execute the provisions of this Law.

TABLE

INSTITUTION: BANKING REGULATION AND SUPERVISION AGENCY

OF THE CREATED POSITIONS

CLASS	TITLE	DEGREE	NUMBER
GİH	Vice President	1	2
GİH	Director	1	4
GİH	Banking Regulation and Supervision Agency Assistant Expert	9	10
TOTAL			16

LIST SHOWING THE DATES OF ENTRY INTO FORCE OF THE LEGISLATION AMENDING OR ADDING TO LAW NO. 6493 OR OF THE ANNULMENT DECISIONS GIVEN BY THE CONSTITUTIONAL COURT

Number of the Amending Law/Decree-Law or of the Annulment Decision of the Constitutional Court	Amended or Annulled Articles of Law No. 6493	Date of Entry into Force
6637	23	7/4/2015
KHK/690	13, 18, 21, 24	29/4/2017
7077	13, 18, 21, 24	8/3/2018
7192	3, 5, 8, 10, 12, 14, 14/A, 15, 16, 17, 18, 20, 21, 22, 23, 24, 25, 26, 27, 29, 37, Temporary Article 3	1/1/2020
	Additional Article 1	six months after the date of its publication (22/11/2019)
7247	12	26/6/2020
7571	12	25/12/2025