Turkey developing money transfer program amid int'l scrutiny

Turkish businesses and banks have been facing problems when sending money internationally due to the increased scrutiny of transfers to countries that have been blacklisted by Western finance systems, such as Iran.

Turkey developing money transfer program amid int'l scrutiny

Amid enhanced scrutiny of money transfers via its banks, particularly to Iran, Ankara is domestically developing computer software to facilitate the transfer of foreign currencies for what it expects to be a system that will mitigate the problems Turkish businesses encounter when conducting international transactions.

Turkish businesses and banks have been facing problems when sending money internationally due to the increased scrutiny of transfers to countries that have been blacklisted by Western finance systems, such as Iran. The central bank has been working on this issue for almost a year, the Vatan daily reported on Tuesday.

The same daily had earlier brought the issue to the agenda with a news report that said a money transfer by a Turkish businessman had been mistakenly blacklisted and blocked by international banking transaction system Swift. The businessman had attempted to send funds in US dollars from İstanbul to an address in Ankara on Tehran Street. The transaction was automatically blocked by Swift's system because the word “Tehran” was enough to set off alarm bells. This, of course, was a false alarm and Swift corrected its mistake in short order.

Tuesday's report cites statements by central bank officials who have said the new domestically developed money transfer system for transactions involving foreign currencies will be ready for testing in July. The new system could be put into use as early as the beginning of 2014 and would be monitored by the Banking Regulation and Supervision Agency (BDDK), according to Vatan.

International scrutiny of money transfers via Turkey has increased as international sanctions around the country's major energy supplier, Iran, tighten. Turkey's “gold-for-gas” trade with Iran garnered international attention through the end of last year, with the US Senate saying in November that it was preparing a law that would impose sanctions on the trade. Turkey has complained due to the increased scrutiny of its foreign exchange transactions.

Cihan

Last Mod: 29 Mayıs 2013, 09:18
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