Turkish account information transferred to German tax authorities; 6 million diaspora face investigations

Under the Multilateral Competent Authority Agreement on Automatic Exchange of Financial Account Information that Türkiye enforced on 31 May 2021, account information for Turkish bank accounts exceeding $1,000 is regularly transmitted to the tax authorities of the countries where Turks residing abroad live. Over the past two years, data transfers have become fully automated and the frequency of submissions has increased noticeably.

Turks in many European countries, particularly in Germany, have begun receiving written notices from the tax authorities of their countries of residence. The German tax authority is directing questions to individuals with money in their accounts asking 'What is the source of this amount?' and 'Why did you not declare this previously?' If money was sent from Germany by bank transfer, the source can be verified and no problem arises; however, amounts brought in cash from Türkiye or those whose origin remains undocumented are creating grounds for money laundering investigations and tax evasion charges.

The agreement was part of steps that enabled Türkiye to exit the Financial Action Task Force's (FATF) grey list. A spokesperson reports that this regulation affects approximately 6 million diaspora members. Citizens residing abroad who have income or accounts in Türkiye need to review their tax obligations in their country of residence.