Announcement on Amendments Regarding Data Sharing

Communiqué Amending the Communiqué on Information Systems of Payment and Electronic Money Institutions and Data Sharing Services of Payment Service Providers in the Field of Payment Services” (the “Communiqué”) has been published in the Offical Gazette dated 7 October 2023 and numbered 32332 by the Central Bank of the Republic of Turkey (the “CBRT”).

As per respective Communiqué, new regulations have been introduced on the sharing and storage of customer data, audit trail registration system process, payment transactions, transactions to be carried out through remote communication tools and contract processes to be established with customers. In general, amendments have been also made with regard to the storage of customer information and sensitive customer data in encrypted form or in secure components.

Furthermore, as seen in the Communiqué and the Regulation Amending the Regulation on Payment Services and the Issuance of Electronic Money and Payment Service Providers (the "Regulation") published on the same day as the Communiqué, the legislation on electronic money and payment institutions in remote communication has been harmonised with the legislation of the Financial Crimes Investigation Board (the "FCIB"). In particular, it is stipulated that the opinion of FCIB shall be taken in the processes of identification and establishment of the contractual relationship be carried out through remote communication tool. In addition, in the case that a central structure, which is deemed appropriate by the CBRT, is not used for the identification and establishment of the contractual relationship to be carried out by means of remote communication tool, the issues that should be applied as a bare minimum are regulated.

Pursuant to the Communiqué, in case one of the parties to the payment transaction is located abroad, the institution may share the required data with the relevant third parties abroad upon the request of the customer within the framework of the principle of proportionality. However, it is regulated that the CBRT may suspend the disclosures made pursuant to this provision or impose additional restrictions on such disclosures.

The relevant Communiqué has entered the force on the date of its publication, effective as 7 October 2023, and you may find the detailed provisions in the Official Gazette.