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tions. The preservation obligation for minimum five years, stipulated
under this provision, shall not constitute a novelty for banks active in
factoring operations. This is because, according to article 42 of the
Banking Law numbered 5411, the banks operating in Turkey are
already obliged to preserve the documents related to their operations
for a period of ten years. Therefore, the preservation obligation for
minimum five years, which is envisaged in the Regulation, shall sole-
ly be considered as a novelty for the factoring companies.
Conclusion
The Regulation introduced new principles and procedures for fac-
toring companies and banks that are established in Turkey, enquiry
obligations, a minimum five-year period of preservation of documents
obligation, and conditions for the acquisition of receivables arising out
of the sale of goods or services. Such provisions are significant for the
entities that provide factoring services and should be taken into con-
sideration by factoring companies and banks.
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