People making money transfers through IBAN in Turkey are being warned to pay attention to the description field on their bank transfers, as financial authorities continue to strengthen checks aimed at tackling the informal economy.
The increasing use of digital banking has made transferring money easier, but experts warn that certain IBAN transactions can create tax or legal problems, particularly when the purpose of a payment is unclear.
According to reports, the Treasury and Finance Ministry and the Financial Crimes Investigation Board (MASAK) are increasing scrutiny of bank transfers. The wording used in the payment description, or leaving the field empty, can become important when a transaction is reviewed.
Rental Payments and Tax Checks
Regular transfers described as “Rent” can be compared with a property owner’s tax declarations. If undeclared rental income is identified, the property owner may be asked to explain the discrepancy.
Experts also warn that descriptions such as “Debt repayment” or “Deposit” do not automatically prevent a transaction from being examined. Where there is no supporting contract, promissory note or other documentation, a transfer connected with a commercial transaction may raise questions about whether a sale or service has been properly recorded and taxed.
Leaving the IBAN Transfer Description Blank Could Put You at Risk
According to reported Court of Cassation decisions, an empty description, or one containing only a full stop or random letters, can make it harder to establish the purpose of a payment in a later legal dispute.
This can be particularly important when money is lent to another person. If the money is not repaid, having no clear record explaining that the transfer was a loan can make it more difficult to prove the nature of the transaction.
For purchases made through social media sellers or small online businesses, simply writing “product/service payment” on the transfer does not replace the requirement for a business to issue the appropriate invoice.
Businesses directing customers to pay into a personal IBAN rather than a business account can also create regulatory and tax issues.
What Should You Write in an IBAN Transfer?
Experts recommend making the purpose of a payment clear. For example, descriptions such as “child’s education allowance”, “personal loan” or “vehicle purchase deposit” can provide a clearer record of why the money was transferred.
For formal or commercial payments, including details such as an invoice number, contract date or relevant title deed or vehicle registration information can also help establish the nature of the transaction.
Large transfers with no obvious purpose, or transactions that appear inconsistent with a person’s normal income and financial activity, may also attract attention from banks as potentially suspicious transactions and could result in temporary restrictions on an account.
The basic message is simple: when sending money by IBAN in Turkey, do not leave the description blank. A clear and accurate explanation can provide useful evidence of what the payment was for if questions arise later.
