27 December 2020
Cash Transaction Limits: The Obligation to Use Banks or PTT for Transactions
One of the most important changes made on the Law on Associations by The Law on the Prevention of Financing for the Spread of Weapons of Mass Destruction (the “Amendment") is the limitation of cash transactions.
Monetary Limit for Cash Transactions
The Amendment regulates that associations are obligated to make all kinds of income, expense, collection of revenues, and payments exceeding TRY 7.637 through the PTT, banks or other financial institutions. All payments of the associations should also be evaluated within this scope. Accordingly, if the Amendment is enacted, sanctions shall be imposed for cash donations or other cash transactions exceeding a value of TRY 7.637.
The Amount will be Revised Annually
The monetary limit for cash transactions shall be revised annually in accordance with the revaluation rate that is determined and published by the Ministry of Treasury and Finance in accordance with the Tax Procedure Law numbered 213.
An administrative fine up to 10% of the transaction value may be imposed for each breach of the provisions regarding cash transaction limitations. However, as opposed to other administrative fines, the fines for this breach shall be imposed directly on the director of the association.