Following long discussions in the Commission, the Cheque Law was enacted on 7 December 2009. The Law contains new provisions that mainly aim to discourage cheque bouncing and/or other breaches of liabilities via the application of more severe and deterrent sanctions. The Law also stipulates additional due diligence and notification obligations in relation to cheque accounts, as well as extensive investigations into the registry records, identification and tax liabilities of the account holders. A significant provision of the Law is the possibility of halting proceedings and/or postponing or suspending the execution of court decisions, provided that the parties reach an agreement and submit such agreement to the relevant court or public prosecutor. Furthermore the sanctions for bounced cheques shall not be applied to those who paid the cheque value together with the interest accrued in accordance with the Law regarding Statutory and Default Interest.

In addition the Law distinguishes between the cheques of merchants and non-merchants and establishes several deterrent measures against the widespread usage of bearer cheques in money laundering. Moreover, despite the differences in the previous law, the new law intends to eliminate discrepancies in the penal sanctions created by the enactment of the Turkish Criminal Code.

See also:

Banking & Finance - Impact of the new cheque law on banks and their employees