Scope of the 12th Judicial Package expands: IBAN regulation takes center stage, enforcement changes left out

The 12th Judicial Package, which will contain comprehensive changes, is nearing its final form following meticulous work. Although initially conceived as more limited, the number of articles has increased in line with requests from ministries, and the draft has been expanded to approximately 50 articles.

DRAFT EXPANDED, SCOPE GROWS

In numerous meetings held at the Palace, legal teams have made repairs and adjustments to various proposals covering both technical and economic topics. Furthermore, the possibility of removing certain articles from the package and turning them into separate legislative proposals is also being kept on the agenda. This piecemeal progress suggests that the evaluation process in the Turkish Grand National Assembly (TBMM) may also be flexible.

IBAN TRANSACTIONS AT THE CENTER OF THE REGULATION

One of the most prominent topics of the package is "IBAN leasing" and similar transactions occurring within the banking system. Such transactions, which have increased with the widespread use of digital payments and money transfers, have caused serious judicial processes. According to data from the Ministry of Justice, it is estimated that approximately 300 thousand bank accounts have been used in the context of fraud or suspicious transactions. It is stated that the number of people currently being investigated and prosecuted for these charges has reached 50 thousand.

NEW DEFINITION OF CRIME AND SANCTION FRAMEWORK

According to the draft regulation, it is aimed to classify these actions as a separate crime with lower sanctions, removing them directly from the scope of aggravated fraud. Thus, it is planned to prevent individuals who allow others to use their accounts unintentionally or without sufficient knowledge of the situation from being punished equally with those committing qualified fraud. Additionally, processing the newly defined crime upon complaint and including it within the scope of reconciliation are among the proposed options. However, uncertainties persist regarding the limits of this regulation, which transactions it will apply to, and how audits will be conducted. Nevertheless, it is anticipated that the new rules to be introduced will contribute to transparency in the financial sector and the fight against the informal economy.

ENFORCEMENT REGULATION REMOVED FROM THE PACKAGE

The enforcement regulation, which is particularly on the public agenda, has been removed from the package, contrary to expectations. The view that the enforcement change, which had been debated in the past as to whether it would be included, should be kept out of the scope in the final stage of the process prevailed. For this reason, fundamental changes to the enforcement system are expected to be brought to the agenda at a later date or through a separate legislative proposal.

NEW TOPICS ON THE AGENDA FOR THE ATTORNEYS ACT

On the other hand, the package may also include some regulations regarding professional and economic issues related to the Attorneys Act. Although details regarding its final form have not yet been announced, it is known that work is being done on articles that will concern the income and working conditions of lawyers. These regulations are expected to create significant debate within the legal community and among bar associations.

While innovations regarding IBAN stand out as the main heading in the 12th Judicial Package, the last-minute removal of the enforcement regulation is noteworthy. The final scope of the package will become clear once the final draft is submitted to Parliament.