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clearing and settlement of transactions for the realization of fund and
security transfers based on transfer orders between three or more par-
ticipants. Stipulations relevant to the systems are provided within
Articles 4 to 9 of the Law.
Institutions that aim at being a system operator shall obtain an
activity permit from the Central Bank. In this regard, the conditions
stipulated in Art.5 of the Law shall be fulfilled. These conditions relate
to some financial and structural issues. For example, the system oper-
ator shall be established as a joint stock company and its paid in capi-
tal shall be free of all encumbrances and shall amount to at least five
million Turkish liras. On the other hand, other conditions relate to the
technical, organizational and personnel capacity of the system opera-
tor, and to whether they have taken the necessary measures for risk
management and business continuity.
The Central Bank is authorized to inspect in order to assure the
permanent functioning of the systems established or to be established.
The cases that require measures to be taken and the measures to be
taken are provided in the Art. 9 of the Law.
Payment Services
The transactions that shall be deemed as payment services and vice
versa are provided in detail in Art. 12 of the Law. These payment ser-
vices can only be provided by the banks regulated under Banking Law
No. 5411
2
(“Law No. 5411”) on electronic money institutions, pay-
ment institutions and the Central Bank.
The payment institution shall mean the legal entity authorized to
provide and realize payment services within the scope of the Law. The
conditions to be fulfilled by payment institutions are stipulated in Art.
14 of the Law. Pursuant to this, payment institutions shall be estab-
lished as joint stock companies and have capital of minimum one or
two million Turkish liras depending on the type of payment service. In
addition to these financial and structural conditions, there exist other
conditions relevant to personnel and management capacities. As per
Art. 8 of the Regulation, detailed documentation is required when fil-
MISCELLANEOUS
395
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Official Gazette dated 01.11.2005 and numbered 25983.