106 / 522
of exchange, or other similar instruments. Additionally, banks and fac-
toring companies that are established in Turkey shall not issue addi-
tional invoices for exchange differences generated on the date payment
is made.
Article 5 of the Regulation sets forth an enquiry system to be
established by factoring companies and banks. According to this,
banks and factoring companies that are established in Turkey shall be
obliged to conduct the enquiry, stipulated under such article, regarding
their clients and related invoices. Pursuant thereto, factoring compa-
nies and banks shall not be contented with the verbal declarations of
their clients; yet, they shall provide enquiries on client information.
Such enquiry shall be comprised of, at minimum, the below:
i) Inspection of invoice information, along with a compliance
check of the contents with the provisions of related regula-
tions as to format and disposition of the invoice,
ii) Establishment of an internal checking system that monitors
the status of the invoices, with a Central Invoice Registration
System which avoids the production of duplicate invoices,
iii) Assessment of the status of their clients, with the aid of their
financial conditions and investigation of former financial
operations, via consulting with the debtors of the invoices and
drawers of the bills of exchange.
Know-your-customer check procedures listed in the Regulation
are the minimum requirements, and the banks and factoring companies
established in Turkey are not limited by them in the enquiry of their
clients. They may utilize other methods, as well.
In order to avoid producing duplicate invoices, the Regulation
envisages yet another special obligation in its 6
th
Article. As per such
Article, banks and factoring companies that are established in Turkey
shall be obliged to inspect the notification form signed by clients (or
their signatories) along with the invoice information, and check
whether the invoice being examined is a duplicate or not, through the
Central Invoice Registration System. Furthermore, the images of such
invoices shall be stored by banks and factoring companies in order to
be used and checked against in potential audits. The expression of the
90
NEWSLETTER 2015