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2016 AFI operations
management. In February 2014, AFI decided to work with the
Credit Bureau of Turkey on the design and composition of
CIRS’s software infrastructure.
Created in collaboration with the Credit Bureau of Turkey as a
project to protect factoring companies and banks against the
potential harm caused by duplicate invoicing and financing in
the conduct of their vitally important trade-finance operations,
CIRS became operational in 2015. As of end-2016, the system
was being used by 17 banks and 61 factoring companies.
As a first step, invoices and similar documents related to the
assignment of commercial receivables began to be fed into the
system. The immediate effect of this was to spot the duplicate
assignment of a quarter of a million documents (65 thousand
in 2016 alone) and prevent the fraud they would have led to.
Major projects and developments
Central Invoice Recording System
The Central Invoice Recording System (CIRS) is a system that
has been created to aggregate all information and documents
pertaining to factoring receivables so as both to prevent the
same receivable from being assigned more than once and to
provide a means to monitor and report factoring-industry data.
The Association of Financial Institutions (AFI) was given the
duty of setting up this system under article 43 of the Leasing,
Factoring, and Financing Companies Act (Law no: 6361), which
went into effect with its publication in the official gazette on
13 December 2012.
As per that mandate as well as that of applicable articles of
AFI’s charter that went into effect with their publication in the
official gazette on 25 July 2013, AFI began working on CIRS.
As a first step, a separate subsidiary to be in charge of the
project was set up within the Association and the Factoring
Sector Representatives Board was given responsibility for its
Central Invoice Recording System
The Central Invoice Recording System, a project undertaken by the Association of Financial Institutions in
partnership with the Credit Bureau of Turkey to protect factoring companies and banks against the potential
harm caused by duplicate invoicing and financing in the conduct of their vitally important trade-finance
operations, has been operating effectively since 2015.
2016 # of Transfers
(Type of Business)
2,601,912
45%
238,072
4%
3,183,378
55%
5,547,218
96%
E‑invoice
Hard copy
Bank
Factoring
2016 # of Transfers
(Type of Document)
# of Risky Transactions
2015
185,000
2016
65,000
Annual Report 2016
The Association of Financial Institutions
42