Turkey Intensifies Crackdown on Unlicensed Foreign Exchange Transactions
In a significant move to combat the unregistered economy, Turkish authorities have initiated a new phase of intensified controls on unlicensed foreign exchange transactions, particularly in major cities and tourist regions. This comes with severe penalties, including hefty fines and business closures. A new reporting channel, “Unauthorized Foreign Exchange Purchase and Sale Notification Application,” has been launched via the e-Devlet Portal, alongside CİMER and other existing channels, aiming for direct and swift reporting of suspicious activities.
Financial Security and Sector Reputation at Stake
Preventing unregistered foreign exchange transactions in high-tourism destinations is deemed critical for both the security of the financial system and the reputation of the sector, according to the Ministry of Treasury and Finance. The Ministry has significantly tightened inspections against businesses engaged in unlicensed foreign exchange activities, especially in major cities and tourist centres.
Since 2018, hundreds of businesses have had their operations suspended, and administrative monetary penalties amounting to millions of Turkish Liras have been initiated. The Ministry explicitly stated that, contrary to popular belief, jewellery stores and similar businesses do not possess the authority to sell foreign currency.
Unauthorised Activities Under Close Scrutiny
Unauthorized activities, particularly concentrated in large cities and tourist areas, are under close surveillance as part of the broader fight against the unregistered economy.
Authorised Institutions for Foreign Exchange Transactions
According to regulations, only banks, PTT (Turkish Post and Telegraph Organisation), and licensed foreign exchange bureaus authorised by the Ministry of Treasury and Finance are permitted to conduct foreign exchange transactions.
Contrary to widespread public perception, the following entities are NOT authorised to buy or sell foreign currency:
- Jewellery stores
- Representatives of payment institutions
- Similar commercial businesses
Businesses found engaging in unauthorised foreign exchange transactions are subject to two types of sanctions, in line with regulations made in 2018 under the Law on the Protection of the Value of Turkish Currency:
- Temporary or permanent suspension of business operations.
- Notification to public prosecutors for administrative monetary penalties.
According to Ministry data, a large proportion of the 859 businesses closed since 2018 are located in provinces with high trade and tourism activity. During the same period, approximately 280 million TL in administrative monetary penalties were initiated.
- 147 businesses had their operations suspended.
- Approximately 108 million TL in administrative monetary penalties were initiated.
The lower and upper limits of administrative monetary penalties are updated annually based on the revaluation rate. For 2025, these limits are:
- Lower limit: 719,030 TL
- Upper limit: 3,595,198 TL
Citizen reports are also crucial in the fight against the unregistered economy.
Mehmet Şimşek, Minister of Treasury and Finance, announced that comprehensive analyses are being conducted with stakeholder institutions to identify risky taxpayers. Şimşek stated that data-driven studies are being carried out in cooperation with the Ministry of Trade, the Central Bank of the Republic of Turkey, and the Revenue Administration. He added that inspections would focus on major cities, high-trade areas, and risky sectors.
“Preliminary research conducted in the field and on digital platforms plays a significant role in forming inspection plans. In 2025, we will increase planned and risk-oriented inspections targeting businesses engaged in unauthorised foreign exchange transactions,” Şimşek said.
Officials indicate that inspections in tourist centres may intensify further before the summer season.
