Company Money Transferred to Director’s Personal Account in Turkey: Criminal Risks 2026

Company money transferred to a director’s personal bank account in Turkey? Learn when the transfer may constitute breach of trust, when it may be legitimate, how prosecutors trace the money, what evidence matters, and how foreign directors and shareholders can protect their rights in 2026.

A transfer from a Turkish company’s bank account to the personal bank account of a director, manager or shareholder can immediately raise suspicions of misuse of company assets. This is especially common in disputes involving foreign-owned companies, joint ventures, family businesses and companies with foreign directors.

But the existence of the transfer alone does not automatically prove a criminal offence.

A director may legitimately receive company money as salary, director remuneration, reimbursement, repayment of a shareholder loan, dividend, advance or another properly authorized payment.

The criminal risk becomes substantially more serious where company money is transferred to a director’s personal account without a genuine corporate purpose, without authorization, or for the personal benefit of the director or another person.

Under Turkish criminal law, one of the central provisions that may become relevant is Article 155 of the Turkish Criminal Code concerning breach of trust. The Constitutional Court describes the offence as involving property belonging to another that was entrusted for safekeeping or use in a particular way and is intentionally disposed of contrary to that purpose for the benefit of the holder or another person.

For foreign directors, shareholders and investors, the central question is therefore not simply:

“Did company money enter the director’s account?”

The real questions are:

Why was it transferred? Who authorized it? What was the accounting basis? Where did the money go afterward? Did the director personally benefit? Was the transaction concealed?

Is It Illegal to Transfer Company Money to a Director’s Personal Account?

Not necessarily.

A company can legitimately owe money to its director.

Common examples include:

• Salary
• Director remuneration
• Expense reimbursement
• Travel expenses
• Advance payments
• Repayment of a director or shareholder loan
• Lawfully distributed dividend
• Payment for a genuine service

The transfer should therefore be analyzed together with its legal and commercial basis.

A bank statement showing:

Company → Director: TRY 3,000,000

does not answer the criminal-law question by itself.

The investigation should determine why TRY 3 million was transferred.

When Can the Transfer Become Criminally Risky?

Criminal risk can increase substantially where evidence suggests that the director had lawful control over company assets but intentionally used that authority for an unauthorized personal or third-party benefit.

Potential warning signs include:

• Transfer without identifiable corporate purpose
• Transfer concealed from other directors or shareholders
• False accounting description
• Fabricated contract
• Fictitious invoice
• Money immediately used for personal purchases
• Money transferred onward to relatives
• Transfer to another company controlled by the director
• Cash withdrawal immediately after receipt
• Cryptocurrency conversion
• International transfer to the director’s private account
• Deletion of related messages or records

No single factor automatically proves guilt. The complete transaction must be reconstructed.

Breach of Trust Under Article 155

Article 155 of the Turkish Criminal Code is particularly important where a person originally obtained lawful control over property but allegedly later used that property contrary to the purpose for which control was entrusted.

The Constitutional Court has explained that the offence protects both property rights and the underlying relationship of trust, and that it targets intentional dispositions incompatible with the purpose of the transfer.

This distinction can be highly relevant to company directors.

A director may lawfully possess:

• Banking authority
• Corporate credit card
• Signature authority
• Access to company cash
• Authority to collect receivables

But lawful access does not necessarily mean unlimited personal entitlement to the company’s assets.

Example: Director Has Full Banking Authority

Assume a foreign director has unrestricted online banking authority.

The company gave the director this authority to:

• Pay employees
• Pay suppliers
• Pay taxes
• Manage investments
• Conduct ordinary company operations

The director transfers TRY 10 million from the company to a personal bank account.

The defense says:

“The director was authorized to operate the bank account.”

That does not completely answer the allegation.

The prosecution may ask:

Was the director authorized to use the bank account for company purposes, or entitled to take TRY 10 million personally?

Banking authority and entitlement to the money are different questions.

Aggravated Breach of Trust and Company Directors

Article 155 also provides an aggravated form of breach of trust where the entrusted property is connected with professional, commercial or service relationships or authority to administer another person’s property.

This can become particularly relevant where a director, CEO, finance manager or another executive has been entrusted with control over corporate assets.

Whether the aggravated provision applies depends on the precise relationship and facts of the case.

Was the Transfer Salary?

This should be easy to investigate.

Check:

• Employment agreement
• Payroll
• Board resolution
• Previous salary payments
• Tax records
• Accounting entries

Suppose the director normally receives TRY 300,000 per month but suddenly receives TRY 8 million described as “salary.”

The description alone will not necessarily resolve the issue.

The underlying entitlement should be established.

Was It Director Remuneration?

A director may have an entitlement to management remuneration.

Preserve the relevant:

• Corporate resolution
• Management agreement
• Payroll documentation
• Accounting records
• Tax treatment
• Historical payment pattern

The strongest defense generally relies on contemporaneous evidence rather than an explanation created after the criminal complaint.

Was It an Expense Reimbursement?

Foreign directors frequently pay corporate expenses personally.

Examples include:

• Hotels
• Flights
• Client meetings
• Equipment
• Professional services
• Emergency supplier expenses

A subsequent company-to-director payment may therefore be legitimate reimbursement.

Reconstruct:

Personal payment → Business expense → Receipt/invoice → Expense approval → Company reimbursement.

Was It Repayment of a Shareholder Loan?

This is one of the most important explanations in closely held companies.

A foreign shareholder may have financed the company personally.

For example:

2024: Director transfers EUR 500,000 to company

2026: Company repays EUR 500,000 to director

Looking only at the second transaction could create a misleading impression.

Preserve:

• Original incoming transfer
• Loan agreement
• Accounting entries
• Shareholder current account
• Board documentation
• Repayment records

Analyze the Complete Shareholder Current Account

Do not examine one payment in isolation.

A director may have repeatedly advanced money to the company and received partial repayments.

Prepare a chronological ledger showing:

Money paid by director to company

Money paid by company to director

Opening balance

Closing balance

This can substantially clarify whether the director received company property or repayment of an existing debt.

Was the Payment a Dividend?

A shareholder may be entitled to company profits, but company cash does not automatically become a shareholder’s personal money merely because the company is profitable.

The corporate basis for the distribution should be examined.

Relevant documents may include:

• Financial statements
• General assembly decisions
• Profit distribution decision
• Accounting records
• Tax records
• Bank transfer description

A director should not attempt to retrospectively relabel an unexplained personal transfer as a dividend without supporting corporate documentation.

Company Money Is Different From Shareholder Money

This distinction is especially important in single-shareholder or family-controlled companies.

A shareholder may think:

“I own the company, therefore the company’s money is mine.”

That reasoning can create serious legal problems.

The company has its own assets and liabilities.

Even a controlling shareholder should distinguish personal finances from corporate finances.

What If the Director Owns 100% of the Company?

Complete share ownership does not mean that corporate accounting, creditor rights, tax obligations and rules governing company assets disappear.

A payment to a sole shareholder should still have an identifiable legal and accounting basis.

The existence of 100% ownership is relevant context but should not automatically be treated as permission to disregard the company’s separate finances.

What If There Are Two 50% Shareholders?

This frequently generates criminal complaints.

Example:

Shareholder A: 50%

Shareholder B: 50%

Shareholder A is also director and controls online banking.

A transfers TRY 15 million to a personal account without telling B.

A says:

“Half of the company belongs to me.”

B says:

“The company money was stolen.”

The investigation should examine corporate ownership separately from ownership of the company’s individual assets.

The dispute should also be analyzed for possible corporate and civil remedies in addition to criminal law.

Personal Account Receipt Is Strong Evidence—but Not the Whole Case

A bank record showing company money entering a director’s personal account can be highly relevant.

But investigators should also establish:

• Why payment was made
• Who approved it
• How it was recorded
• Whether the company owed the director money
• What happened after receipt
• Whether the director concealed it
• Whether the company suffered loss

Trace the Money Beyond the Director’s Account

The next transaction can be critical.

For example:

Company → Director → Luxury vehicle

may present one factual picture.

Company → Director → Company supplier

may present another.

Company → Director → Repayment to another group company

may require a different commercial analysis.

Follow the financial chain.

Director Transfers Money to Their Spouse or Relative

Suppose TRY 5 million enters the director’s account and is immediately transferred to:

• Spouse
• Child
• Sibling
• Relative
• Friend

Investigators may examine whether the onward recipient was the ultimate beneficiary.

The relationship alone does not prove criminal conduct, but the economic basis of the onward payment becomes relevant.

Director Transfers Money to Their Own Company

A foreign director may own another company.

If money moves:

Company A → Director → Company B

determine why.

Possible explanations include:

• Genuine intercompany debt
• Investment
• Service payment
• Loan
• Unauthorized diversion

Preserve contemporaneous contracts and accounting evidence.

International Transfer to Director’s Foreign Account

The same principles apply where the director’s personal account is abroad.

The fact that the money left Turkey may increase tracing complexity, but it does not automatically establish criminal intent.

Identify:

• Beneficiary bank
• Beneficiary name
• Amount
• Currency
• Transfer reference
• Commercial explanation
• Accounting treatment

What If the Director Withdraws the Money in Cash?

Cash can make reconstruction more difficult.

Investigators may examine:

• Withdrawal date
• Branch or ATM
• Amount
• Person making withdrawal
• Available camera records
• Company cash ledger
• Claimed recipient

If the director claims the cash was used for company expenses, supporting documentation becomes important.

Cryptocurrency Conversion

Suppose company money enters the director’s personal account and is then transferred to a crypto-asset service provider.

Preserve:

• Exchange account information
• Deposit records
• Asset purchased
• Wallet address
• Transaction hash
• Network
• Subsequent transfers

Cryptocurrency movement can be traced technically, but a wallet address does not by itself establish the identity of the person controlling it.

What If the Director Says the Transfer Was Temporary?

A director may claim:

“I moved the money temporarily and intended to return it.”

Intentions should be assessed against objective evidence.

Relevant facts may include:

• Duration
• Communications
• Accounting treatment
• Whether interest was charged
• Whether authorization existed
• Whether the funds were used personally
• When repayment occurred

Returning the Money Does Not Automatically Erase the Criminal Issue

Repayment can be legally important, but it should not be assumed that returning money automatically eliminates an alleged offence.

Turkish criminal law contains specific rules concerning effective remorse for certain property offences, and their applicability depends on the offence, timing and procedural stage.

Accordingly, repayment should be evaluated as part of a legal strategy rather than as an automatic way to terminate an investigation.

False Accounting Entries Can Increase Risk

Suppose the director receives TRY 10 million personally.

Accounting records describe it as:

“Supplier payment.”

But the recipient was not a supplier.

That discrepancy may create further questions.

Investigators may ask:

• Who created the entry?
• Who instructed accounting?
• Was the description deliberately false?
• Were supporting documents fabricated?

Fake Invoice Used to Justify Personal Transfer

The risk can become substantially greater if an allegedly fictitious invoice was created to explain the transfer.

Example:

Company → Director-controlled business → Director

combined with an invoice for services that allegedly never occurred.

The investigation may then expand beyond breach of trust into document, accounting or tax-related allegations depending on the facts.

Do Not Create a Contract After Discovery

If no agreement existed at the time, do not manufacture one now.

Never:

• Backdate shareholder loans
• Backdate consultancy agreements
• Create false board resolutions
• Alter accounting records
• Fabricate receipts

Preserve genuine evidence instead.

Could the Transfer Constitute Fraud?

Potentially, depending on the method used.

If deceptive conduct was used to induce the company or another authorized person to transfer money, fraud provisions may require consideration.

This should be distinguished from the classic breach-of-trust scenario where the director already had lawful control over the property but allegedly misused that control.

Could It Be a Purely Corporate Dispute?

Yes.

A disputed transfer may ultimately concern:

• Shareholder loan
• Director remuneration
• Dividend
• Expense reimbursement
• Related-party transaction
• Authority dispute

A criminal complaint should not automatically convert every accounting or corporate disagreement into a crime.

The Constitutional Court has explained that Article 155 targets intentional dealings with entrusted property that are inconsistent with the purpose of the relationship of trust.

Shareholder Dispute Can Be Important Context

Many complaints arise immediately after:

• Director removal
• Shareholder deadlock
• Divorce between shareholders
• Failed acquisition
• Company breakup
• Control dispute

The timing does not automatically prove that the complaint is abusive.

But preserve the chronology.

A transfer openly reflected in company accounts and accepted for years may present a different evidentiary issue from a secret transfer discovered only after management changes.

What If the Other Shareholders Previously Approved Similar Transfers?

Preserve:

• Previous board resolutions
• Emails
• Historical accounting
• Prior transfers
• Shareholder communications

Past practice may help explain the transaction.

But previous practice does not automatically legalize an otherwise unlawful appropriation.

Banking Authority Must Be Examined

Determine whether the director had:

• Sole authority
• Joint signature authority
• Transaction limits
• Online banking access
• Corporate bank card
• Payment approval authority

Bank authorization can establish how the transaction was technically possible.

It does not necessarily establish the director’s substantive entitlement to the funds.

Dual Approval Systems

Many companies use:

Finance employee creates transfer → Director approves.

Investigators should determine who performed each stage.

Relevant bank records may identify:

• User creating transaction
• User approving transaction
• Date and time
• Authentication process

What If the Director Denies Making the Transfer?

Do not rely only on the name associated with an online banking profile.

Potential evidence may include:

• Bank login records
• Authentication records
• Device records
• Corporate computer logs
• Email notifications
• Mobile-phone evidence

The actual user should be identified where disputed.

Accounting Records Are Critical

Compare the transfer with:

• General ledger
• Bank ledger
• Shareholder current account
• Payroll
• Expense accounts
• Loan accounts
• Dividend records

Ask:

How was the transaction recorded at the time?

Contemporaneous accounting treatment can be important evidence.

But Accounting Records Are Not Conclusive

Writing:

“loan repayment”

in the accounting software does not create a genuine loan if none existed.

Similarly:

“consultancy expense”

does not prove that consultancy services occurred.

The underlying transaction must be established.

Emails and Messages Can Explain the Payment

Preserve the complete communication history.

Messages may show:

• Payment instructions
• Shareholder approval
• Loan discussions
• Expense approval
• Objections
• Attempts to conceal the transaction

A selected screenshot should not automatically be treated as the complete conversation.

Foreign-Language Communications

Foreign directors frequently communicate with shareholders or headquarters in English or another language.

Preserve originals.

Translation should be accurate and contextual.

A financial expression can change meaning significantly when translated without the surrounding conversation.

Personal Criminal Liability Must Be Individualized

The director’s title alone is not enough.

The investigation should establish:

Who ordered the transfer?

Who executed it?

Who approved it?

Who received it?

Who ultimately benefited?

Who created the accounting explanation?

The Constitutional Court’s discussion of Article 155 emphasizes the intentional misuse of entrusted property, making the actual conduct and purpose of the accused central to the analysis.

What If the CEO Ordered the Director to Make the Transfer?

Preserve the instruction.

An instruction can be relevant to the factual reconstruction, but following another executive’s instruction does not automatically resolve criminal responsibility if the transaction was knowingly unlawful.

Examine:

• Authority
• Knowledge
• Purpose
• Benefit
• Supporting documentation

What If the Director Joined the Company Later?

Chronology can resolve major issues.

Example:

March 2024 — disputed transfer

January 2025 — foreign director appointed

2026 — complaint filed

Preserve appointment and authority records.

A person’s current directorship should not automatically create responsibility for earlier transactions.

What If the Director Had Already Resigned?

Preserve:

• Resignation
• Board resolution
• Trade registry records
• Bank authority termination
• Signature authority cancellation

The exact date of the disputed transfer should be compared with the period of authority.

Company and Director Accounts Must Be Separated

One of the most effective preventive measures for foreign-owned businesses is strict separation between:

Corporate banking

and

personal banking.

Repeated movement between the two without clear documentation creates both accounting and criminal-investigation risk.

Can Prosecutors Trace the Personal Account?

Banking evidence can become central to a criminal investigation where the statutory requirements for obtaining it are met.

Investigators may reconstruct:

Company → Director → Second account → Asset purchase / cash / foreign transfer / third party.

A transfer should therefore be analyzed as part of the complete financial chain.

Can Assets Be Seized?

Turkish criminal procedure contains an asset-seizure mechanism for specified offences where statutory conditions are satisfied. Constitutional Court materials reproducing Article 128 of the Criminal Procedure Code list breach of trust under Article 155 among the offences within that framework.

This does not mean a bank account is automatically frozen whenever someone files a complaint.

The statutory evidentiary and procedural requirements for the particular measure must still be satisfied.

Seizure Is Not a Conviction

A provisional restriction on an account or asset should not be confused with a final finding that the money represents criminal proceeds.

The underlying allegation, ownership, financial connection and proportionality of the measure should be examined separately.

Can Company Shares Be Affected?

Article 128 contains mechanisms addressing specified rights, receivables and company shareholdings when its conditions are met. Constitutional Court materials setting out the provision note procedural rules for executing seizure measures concerning company shares.

Again, such measures are not automatic consequences of a criminal complaint.

Evidence for the Company or Complaining Shareholder

If company money appears to have been improperly transferred, preserve:

• Full bank statements
• Transaction receipts
• Corporate resolutions
• Signature authority
• Shareholders’ agreement
• Accounting records
• Emails
• Messages
• Loan records
• Payroll
• Dividend records
• Expense records

Do this before approaching the dispute solely through accusations.

Evidence for the Accused Director

A director who says the payment was legitimate should preserve:

• Original shareholder loan
• Employment contract
• Remuneration resolution
• Expense receipts
• Dividend decision
• Accounting ledger
• Emails approving payment
• Historical similar transactions
• Bank records

The strongest defense is generally documentary.

Create a Transaction Reconstruction Table

Issue	Evidence to Examine
Amount transferred	Bank statement
Recipient	Personal account records
Corporate authorization	Board/shareholder decisions
Claimed reason	Agreement/accounting
Director entitlement	Loan/payroll/dividend records
Subsequent movement	Bank trail
Company loss	Financial records
Personal benefit	Purchases/transfers/assets
Disclosure	Emails/reports
Accounting treatment	General ledger

This structure can help prevent a complex corporate dispute from becoming an argument based solely on accusations.

20 Immediate Steps After Discovering the Transfer

1. Obtain the complete company bank statement.
2. Preserve the transaction receipt.
3. Identify the director’s recipient account.
4. Determine who initiated the payment.
5. Determine who approved it.
6. Review bank authorization.
7. Review corporate signature authority.
8. Check board resolutions.
9. Check general assembly resolutions.
10. Review the director’s employment agreement.
11. Review shareholder loan accounts.
12. Check dividend decisions.
13. Review expense reimbursements.
14. Compare the transaction with accounting records.
15. Preserve emails and messages.
16. Identify onward transfers where lawfully available.
17. Calculate the company’s actual alleged loss.
18. Preserve evidence before personnel or records disappear.
19. Do not alter, delete or fabricate documents.
20. Evaluate criminal, corporate and recovery remedies together.

Frequently Asked Questions

1. Is it automatically a crime if company money is transferred to a director’s personal account in Turkey?

No. The legal basis of the transfer must be examined. Salary, reimbursement, loan repayment, remuneration or dividend payments may have legitimate explanations.

2. When can the transfer constitute breach of trust?

Article 155 may become relevant where property entrusted for a specified purpose is intentionally used contrary to that purpose for the benefit of the accused or another person. The precise circumstances determine whether the statutory elements are satisfied.

3. Does banking authority allow a director to transfer company money personally?

Banking authority can permit the director to technically execute transactions, but it does not necessarily create personal entitlement to company funds.

4. What if the money was repayment of a shareholder loan?

The original loan should be proven through bank records, accounting entries, agreements and other contemporaneous evidence.

5. What if the director returned the money?

Repayment can be legally relevant, but it should not automatically be assumed to erase any earlier alleged offence. Its effect depends on the legal characterization, timing and applicable provisions.

6. Can prosecutors examine where the money went afterward?

Financial movements can become relevant evidence in a criminal investigation. Onward transfers may help determine the actual purpose and beneficiary of the transaction.

7. Can the director’s personal bank account be frozen?

Asset measures can potentially be imposed where the applicable statutory requirements are met. Breach of trust is among the offences listed within the Article 128 asset-seizure framework, but a complaint alone does not automatically freeze an account.

8. What if the director says the payment was salary or a bonus?

Check payroll, contractual entitlement, corporate approval, tax treatment and historical payment practices. The label attached to the transaction is not conclusive.

9. What if the transfer occurred during a shareholder dispute?

The underlying shareholder conflict is relevant context, but it neither proves nor disproves criminal conduct. The financial transaction should be independently reconstructed.

10. What should a foreign company do immediately after discovering an unexplained transfer?

Preserve complete banking and accounting records, identify who authorized the payment, determine its claimed legal basis, trace the financial chain where legally possible, secure corporate records and assess both criminal and company-law remedies promptly.

2026 Legal Perspective: Follow the Money and the Authority

For foreign-owned companies, the most important mistake is treating every company-to-director payment as either obviously criminal or obviously legitimate.

Neither assumption is safe.

The analysis should follow two parallel chains:

Authority chain:
Shareholders → Board → Director → Banking authority → Transaction approval

Money chain:
Company → Director’s account → Subsequent transfer/use → Ultimate beneficiary

The two chains should then be compared with:

Accounting → Contracts → Corporate resolutions → Communications → Commercial reality.

Where those records demonstrate a genuine debt, salary, reimbursement or other legitimate corporate purpose, they may materially support the director’s position.

Where the evidence instead indicates intentional use of entrusted company property for unauthorized personal benefit, Article 155 and related criminal-law issues may become significantly more serious.

Legal Assistance for Company Money Transferred to a Director’s Personal Account in Turkey

Cases involving company money transferred to a director’s personal account can quickly develop into simultaneous criminal, corporate, accounting and shareholder disputes.

The critical questions are:

Why was the money transferred?

Was the director authorized?

Did the company owe the director money?

How was the transaction recorded?

Where did the money go afterward?

Did the director personally benefit?

Was any document fabricated to justify the transfer?

Can the company recover the funds or secure relevant assets?

Fırat Fesih Kaya Law Office provides legal assistance to foreign investors, shareholders, directors, CEOs and foreign-owned companies facing allegations involving unauthorized transfers, misuse of company money, breach of trust and corporate criminal investigations in Turkey.

Lawyer Fırat Fesih Kaya assists foreign clients with criminal complaints and defense, bank transaction analysis, evidence preservation, shareholder disputes, director liability, asset tracing, company records and coordinated criminal and corporate recovery strategies.

Early legal intervention can be particularly important where substantial company funds have moved into personal accounts and may subsequently be transferred to other accounts, related parties, foreign jurisdictions or other assets.

Phone: +90 312 434 22 22
Mobile: +90 532 769 22 22
Email: info@firatfesihkaya.av.tr
Address: Mevlana Boulevard No:221, Yıldırım Tower No:148, 06520 Balgat, Çankaya, Ankara, Turkey

This publication is provided for general informational purposes and does not constitute legal advice. Whether a company-to-director transfer creates criminal liability depends on the director’s authority, the company’s legal structure, the genuine basis of the payment, accounting and banking evidence, the destination of the funds, individual intent and the circumstances of the particular case.