Turkey doubles identity verification thresholds for transfers

Identity verification requirements for financial transactions in Turkey have been significantly relaxed under new regulations published in the Official Gazette. The monetary threshold triggering mandatory customer identification for cash, foreign currency, and jewelry dealings has doubled from 185,000 Turkish Lira to 370,000 Turkish Lira.

Revised limits for physical transactions

The updated rules stipulate that banks must collect and verify identity information when a single transaction or multiple linked transactions total 370,000 Turkish Lira or more. This requirement extends to individuals acting on behalf of the customer. Additionally, institutions are obligated to implement measures to identify the ultimate beneficial owner of such operations.

Electronic transfer thresholds increased

For electronic transfers, digital identity verification, and simplified measures, the applicable limit has also risen by 100 percent. The previous threshold of 15,000 Turkish Lira now stands at 30,000 Turkish Lira. These changes affect obligations for banks, financing and factoring companies, capital market institutions, portfolio management firms, as well as electronic money and payment service providers.

SMS authentication replaces signatures

A key procedural shift allows financial institutions to authenticate customers via internet and mobile channels using one-time SMS codes (SMS OTP). This method applies when the code is sent to a mobile phone number previously verified by the institution. Under these specific conditions, obtaining a physical signature sample from the customer is no longer required.