Turkey, US set to ink financial information exchange deal

New agreement between US and Turkey to increase security measures on tax avoidance

Photo by: AA
Photo by: AA

Updated Jul 28, 2015

Turkey’s Finance Minister Mehmet Simsek announced that an agreement between the Turkish government and United States administration will be signed on Thursday. The deal is expected to create ease in the exchange of information between the two countries and will help tackle issue with tax evasion. 

“With the agreement, some information of American bank account holders in Turkish financial institutions will be given to the US and the same will be the case for the information about Turkish account holders in the US based financial institutions,” said Simsek. 

Finance minister also noted that the agreement will be based on two models developed by US authorities. 

Model 1 which will be signed on July 23, will deal with reciprocity in sharing data, while Model 2 will directly transmit information to US authorities.

Currently, the US has signed the deal on Model 1 with 61 countries while Model 2 has been signed by seven countries.

The international agreement is known to be signed between most members of the Organization for Economic Cooperation and Development (OECD) and the G20.

TRTWorld and agencies