Are your assets frozen in Turkey during a criminal investigation? Learn how foreign investors and company owners can challenge asset freezing orders affecting bank accounts, company shares, real estate, receivables and other property.

An asset freezing order in Turkey can create immediate and serious consequences for a foreign investor, shareholder or company owner. Bank accounts may become inaccessible, company shares may be restricted, real estate may be affected by a registry annotation, receivables may become unavailable and business operations may be disrupted before the underlying criminal investigation has reached a final judgment.

The most important point is that an asset freeze imposed during criminal proceedings is generally a protective measure, not a finding of guilt and not necessarily a permanent confiscation of property. Turkish criminal procedure permits specified assets to be seized during an investigation or prosecution when statutory requirements are satisfied, but the measure remains open to judicial challenge.

Article 128 of the criminal procedure framework is particularly important. It can apply to real estate, vehicles, bank and financial accounts, rights and receivables, securities, company shares, safe-deposit-box contents and other assets. The statutory framework requires strong suspicion based on concrete evidence regarding both the commission of the relevant offence and the proposition that the identified assets were obtained from that offence. (Kararlar Bilgi Bankası)

For foreign investors, the central defense question is therefore usually not simply “Is there a criminal investigation?” It is also “What evidence connects these specific assets to the alleged criminal activity?”

What Is an Asset Freezing Order in Turkey?

An asset freezing order prevents an owner from freely disposing of specified property while criminal proceedings continue.

Depending on the measure, the investor may remain the legal owner but lose the ability to sell, transfer, withdraw, pledge or otherwise dispose of the property.

The Constitutional Court treats criminal seizure measures as interferences with the constitutional right to property. Because such measures are temporary protective restrictions rather than automatically permanent deprivation, their legality and proportionality must be assessed throughout the proceedings. (Anayasa Mahkemesi)

This distinction between temporary seizure and permanent confiscation is essential.

Which Assets Can Be Frozen?

Under Article 128, potentially affected property includes bank accounts, real estate, vehicles, rights and receivables, securities, company shares, safe-deposit-box contents and other property values belonging to the suspect or defendant.

The law can also reach specifically identified property even where it is held by another person. (Kararlar Bilgi Bankası)

For a foreign investor, an asset order can therefore affect several parts of an investment structure simultaneously.

A restriction might affect the investor’s personal bank account, shares in a locally incorporated company, real estate held as an investment and receivables arising from commercial transactions.

Can Foreign Investors’ Assets Be Frozen?

Yes.

Foreign nationality does not protect assets from criminal procedural measures merely because the beneficial owner lives abroad or holds another citizenship.

At the same time, foreigners benefit from the same fundamental requirement that interference with property must have an adequate legal basis and satisfy applicable procedural and constitutional safeguards.

The investor’s nationality does not reduce the authorities’ obligations concerning legality, evidentiary basis and proportionality.

Does an Asset Freeze Mean the Investor Is Guilty?

No.

Asset seizure is capable of being imposed while an investigation or prosecution is pending.

Its purpose is protective.

For example, authorities may seek to prevent property allegedly representing criminal proceeds from being transferred before a potential confiscation issue can eventually be determined.

The fact that such a measure exists should therefore never be described as proof that the investor committed the alleged offence.

What Is the Difference Between Freezing and Confiscation?

This is one of the most important distinctions for foreign clients.

Freezing or seizure generally restricts the use or disposition of property while proceedings are continuing.

Confiscation concerns permanent deprivation where the applicable legal requirements are ultimately established.

A foreign investor whose bank account or shares have been frozen should therefore not assume that ownership has permanently been lost.

The immediate legal objective is often to have the protective measure lifted, narrowed or periodically reconsidered before the underlying criminal proceedings end.

What Conditions Apply Under Article 128?

Article 128 requires more than the mere existence of an allegation.

The statutory text reproduced in Constitutional Court decisions requires strong suspicion based on concrete evidence that the relevant offence was committed and that the assets were obtained from that offence. (Kararlar Bilgi Bankası)

This creates a crucial distinction.

There may potentially be significant evidence that a person committed an offence while insufficient evidence exists that a particular house, bank balance or company shareholding was derived from that offence.

That distinction can provide an important basis for challenging the asset restriction.

Is Every Criminal Offence Enough for an Article 128 Freeze?

No.

Article 128 operates within a defined statutory framework and is not simply a general power allowing all property to be frozen whenever any criminal investigation exists.

Counsel should therefore identify the precise alleged offence and determine whether the statutory basis relied upon actually applies.

The order itself and the investigation file should be examined rather than assuming that the reference to a criminal investigation is sufficient.

Who Decides on the Asset Freeze?

Under the Article 128 framework reflected in current Ministry of Justice materials, seizure of real estate, rights and receivables requires a unanimous decision of the competent serious criminal court. The same materials explain that the unanimity requirement also applies when the competent authority decides upon an objection concerning the measure. (Rayp Adalet)

This procedural requirement should be checked carefully when reviewing the legality of an order.

Is a Financial Report Required?

Article 128 also contains an important reporting mechanism.

Ministry of Justice materials explain that, depending on the nature of the property and investigation, a report concerning the value allegedly obtained from the offence is obtained from the competent regulatory or financial authority. The materials identify authorities including financial intelligence, banking, capital-markets and accounting oversight bodies. (Rayp Adalet)

The same guidance states that the report is to be prepared within three months, with a possible additional two-month period where special reasons require an extension. (Rayp Adalet)

For a foreign investor, the existence, content and conclusions of the financial analysis may become critical.

Can Bank Accounts Be Frozen?

Yes.

Article 128 expressly includes accounts held at banks and other financial institutions. (Kararlar Bilgi Bankası)

Once an appropriate order is issued, Ministry of Justice guidance explains that it is communicated immediately to the relevant financial institution and subsequently formally served. Transactions designed to defeat the restriction after the order has been issued are ineffective. (Rayp Adalet)

Therefore, attempting to persuade a bank branch to ignore the restriction will generally accomplish nothing.

The judicial measure itself must be addressed.

Can Foreign Currency Accounts Be Affected?

Potentially, yes.

The relevant statutory category covers accounts at banks and other financial institutions rather than only accounts denominated in a particular currency.

Foreign investors holding substantial balances in euros, dollars or other currencies should therefore determine exactly which accounts have been affected by the order.

Can Company Shares Be Frozen?

Yes.

Company shares are expressly included within Article 128.

Ministry of Justice guidance states that an order concerning company shares is communicated to the company’s management and the relevant commercial registry. (Rayp Adalet)

This can have serious consequences for a foreign investor attempting to sell, transfer or restructure an ownership interest.

Does Freezing Shares Mean the Company Itself Has Been Seized?

Not necessarily.

The investor’s shares and the company’s own assets are legally distinct issues.

This distinction can become extremely important.

A shareholder may be investigated personally while the company continues legitimate commercial operations. Conversely, the authorities may allege that the company itself or its assets are connected to the criminal conduct.

The defense should therefore determine precisely what the order covers.

Can the Company’s Own Bank Accounts Be Frozen?

Potentially, depending on the facts and legal basis.

However, an investigation concerning a shareholder or director does not automatically establish that every company asset represents proceeds of criminal activity.

The company may have legitimate income from customers, investments, exports, services or other business activities.

Corporate accounting and financial evidence can therefore become essential in separating legitimate company property from assets allegedly connected to criminal conduct.

Can Real Estate Be Frozen?

Yes.

Article 128 expressly includes real estate.

The measure is implemented through an annotation in the relevant property registry. (Rayp Adalet)

This can prevent or materially restrict transactions involving the property while the measure remains in force.

Foreign real estate investors should determine whether the restriction concerns the property itself, ownership interests or another related asset.

Can Vehicles Be Restricted?

Yes.

The statutory framework includes land, sea and air transportation vehicles. Relevant seizure orders are implemented through the appropriate registry. (Rayp Adalet)

For companies operating fleets or commercially important vehicles, such restrictions can create significant operational consequences.

Can Receivables Be Frozen?

Yes.

Article 128 covers rights and receivables held against natural or legal persons. (Kararlar Bilgi Bankası)

This can be especially significant for businesses.

A company may technically remain operational but be unable to collect or dispose freely of important receivables.

The practical effect can therefore resemble a severe liquidity restriction.

Can Assets Held by Another Person Be Affected?

Potentially.

Article 128 expressly contemplates seizure of specifically identified property even when it is in the possession of someone other than the suspect or defendant. (Kararlar Bilgi Bankası)

However, third-party ownership and good faith can become extremely important.

The Constitutional Court’s property-rights jurisprudence emphasizes the relationship between the owner’s conduct, the alleged unlawful activity and the affected property. It also stresses the importance of remedies protecting good-faith property owners. (Anayasa Mahkemesi)

What If the Property Belongs to the Investor’s Spouse?

Ownership should be established independently.

The mere fact that a person is married to a suspect does not itself resolve whether particular assets represent criminal proceeds.

The Constitutional Court has examined cases involving seizure of a spouse’s assets and evaluates the measure in light of statutory authority, legitimate purpose and proportionality. (Kararlar Bilgi Bankası)

A spouse seeking release should therefore document when and how the assets were acquired and the lawful source of the purchase funds.

What If the Property Belongs to an Independent Company?

This distinction should be raised immediately.

A company has separate legal personality.

If authorities freeze company assets because of allegations against a shareholder or director, counsel should examine the alleged connection between the company property and criminal conduct.

Evidence may include audited financial statements, invoices, customer contracts, tax records, bank statements and historical capital contributions.

What If a Foreign Investor Bought the Shares From Someone Under Investigation?

This creates a potentially complicated good-faith acquisition issue.

The investor should preserve the entire acquisition file, including the share purchase agreement, payment records, due-diligence documents, valuation reports, corporate approvals and communications surrounding the acquisition.

The Constitutional Court has examined a case involving alleged sham transfers of company shares followed by seizure and appointment of management. In that case, it concluded on the specific evidence that the authorities’ assessment was not arbitrary and that the measures did not impose a disproportionate burden. (Anayasa Mahkemesi)

The decision illustrates why timing, payment evidence and commercial substance of the acquisition matter greatly.

Can Authorities Claim That a Share Transfer Was a Sham?

Potentially.

If prosecutors believe shares were transferred merely to conceal ownership or prevent seizure, they may challenge the economic reality of the transaction.

A genuine foreign purchaser should therefore be able to demonstrate:

the commercial purpose of the acquisition,

actual payment of the purchase price,

independent negotiations,

due diligence,

real assumption of ownership rights,

and normal post-acquisition corporate conduct.

Transactions carried out shortly before an anticipated asset freeze will receive particularly close scrutiny.

Can an Asset Freeze Be Challenged?

Yes.

Ministry of Justice materials expressly state that the Article 128 seizure measure can be challenged through the general objection mechanism. (Rayp Adalet)

The objection should be evidence-based.

Simply stating that the investor is innocent or needs the assets is rarely the strongest approach.

The application should attack the legal and factual foundation for the measure.

What Can Be Challenged?

Depending on the case, counsel may challenge whether the alleged offence falls within the applicable framework, whether the required level of suspicion exists, whether concrete evidence connects the particular assets to criminal proceeds, whether required procedural steps were followed, whether the scope of the measure is excessive and whether continued seizure remains proportionate.

Ministry of Justice defense materials specifically identify issues such as the concrete-evidence requirement, decision requirements and necessary institutional reports as matters counsel should examine when considering an objection. (Rayp Adalet)

How Important Is the Source of Funds?

Extremely important.

Foreign investors frequently acquire Turkish assets using money earned or accumulated abroad.

The defense should reconstruct the financial trail from origin to acquisition.

For example, if a foreign investor purchased company shares using proceeds from the documented sale of a business several years before the alleged criminal conduct occurred, that chronology may materially weaken an allegation that the shares represent proceeds from the offence.

What Documents Can Prove Lawful Source of Wealth?

Depending on the case, relevant evidence may include foreign bank statements, property-sale agreements, company-sale documents, inheritance records, employment records, dividend documents, tax returns, audited financial statements, loan agreements, investment agreements and international transfer records.

The objective is to demonstrate a coherent and verifiable chain.

Timing Can Be Crucial

Assume the alleged offence occurred between 2024 and 2025.

The investor purchased an apartment in 2021 using money transferred from a foreign bank account containing long-established investment income.

That timeline matters.

Article 128 requires the relevant connection between the alleged offence and property claimed to have been obtained from it. (Kararlar Bilgi Bankası)

Evidence that an asset predates the alleged criminal activity may therefore become extremely important.

Can the Entire Asset Portfolio Be Frozen Because of One Transaction?

This should be examined critically.

If an investigation concerns a relatively limited transaction but an investor’s substantially larger asset portfolio is frozen, counsel should analyze whether each restricted asset has the required connection to the alleged criminal proceeds.

The proportionality of the overall restriction can also become relevant.

The Constitutional Court states that property measures must maintain a fair balance between the public interest and the burden imposed on the owner. (Anayasa Mahkemesi)

Can Only Part of an Asset Freeze Be Lifted?

Depending on the facts, counsel may request complete removal or narrowing of the measure.

Suppose an investor has substantial assets but only a specific amount is allegedly connected to the criminal investigation.

Financial tracing may allow legitimate assets to be separated from the disputed amount.

A carefully documented request to narrow the measure can sometimes be strategically stronger than an unsupported demand to release everything.

Can a Court Lift the Freeze While the Criminal Case Continues?

Yes, where the legal conditions supporting continued seizure are no longer established.

An important Constitutional Court case records a criminal court lifting asset-seizure measures during ongoing proceedings after financial analysis failed to establish concrete findings that the assets had been obtained from the alleged criminal activity. The court concluded that although suspicion concerning the underlying alleged offence remained, the separate requirement connecting the assets to that activity had not been established. (Kararlar Bilgi Bankası)

This distinction is extremely important for foreign investors.

Suspicion against the person does not automatically prove criminal origin of the property.

Does an Investor Have to Wait for Acquittal?

Not necessarily.

Because asset seizure is a protective measure, its continuing legal basis can be challenged while the criminal proceedings remain pending.

A foreign investor should therefore not assume that nothing can be done until a trial lasting several years reaches final judgment.

Can Prolonged Freezing Become Disproportionate?

Potentially.

Duration is an important part of proportionality.

The Constitutional Court recognizes that seizure interferes with property rights and requires a fair balance between the legitimate public objective and the burden imposed on the owner. (Anayasa Mahkemesi)

An initially justified restriction should not become an automatic indefinite measure without adequate legal justification.

Can the Business Consequences Be Raised?

Yes.

The defense should document actual economic effects where relevant.

A company may be unable to pay employees.

Production may stop.

Suppliers may terminate contracts.

Credit facilities may be withdrawn.

A planned acquisition may collapse.

These effects do not automatically invalidate a lawful seizure, but they can become relevant when assessing proportionality and whether a narrower measure could adequately protect the investigation.

Can an Asset Freeze Prevent a Company Sale?

Potentially.

Restrictions on shares or other company assets can make a planned acquisition impossible or substantially more complicated.

Foreign buyers conducting due diligence should therefore investigate whether any criminal seizure, registry annotation or related restriction affects the target company’s shares or property before closing.

Can a Foreign Investor Sell Frozen Shares?

An investor should not attempt to circumvent a lawful seizure.

Ministry of Justice guidance states that company-share seizure orders are communicated to the company and commercial registry. (Rayp Adalet)

Transactions intended to defeat a legally binding asset restriction can create significant additional problems.

The correct approach is to challenge the restriction.

Should Assets Be Transferred After Learning About an Investigation?

Attempting to conceal or transfer property to defeat an anticipated or existing judicial measure can seriously damage the investor’s position.

Do not create artificial transfers.

Do not backdate agreements.

Do not transfer shares to relatives merely to make them appear independent.

Do not create fictitious debts.

Such transactions may themselves become evidence used to support allegations that the owner intended to conceal property.

Can the Company Continue Operating During the Freeze?

Sometimes.

The answer depends on what has actually been restricted.

A restriction affecting a shareholder’s shares may create different consequences from a freeze affecting the company’s operating bank accounts and receivables.

Management should therefore prepare an immediate asset-impact analysis identifying what the company can and cannot legally do.

What Is the Difference Between an Asset Freeze and Appointment of Management?

These are separate measures.

Restricting property or company shares does not automatically mean that control of company management has been transferred.

However, certain investigations may involve additional measures affecting company management.

The Constitutional Court has examined cases involving both asset seizure and appointment of management, demonstrating that these measures can coexist but require separate legal analysis. (Anayasa Mahkemesi)

What Should a Foreign Investor Do Immediately?

The first priority is to identify the exact order rather than relying on information received informally from a bank, employee or business partner.

Counsel should determine which authority issued the decision, the investigation number, alleged offence, assets affected, statutory basis, evidence relied upon and available objection route.

At the same time, the investor should begin collecting financial records proving ownership and lawful origin.

Do Not Destroy or Alter Financial Records

This is critical.

Foreign investors should preserve bank statements, contracts, corporate records, invoices, emails, accounting data and transaction documentation.

Deleting records after learning about a criminal investigation can seriously damage the defense.

Financial tracing is often one of the strongest methods of demonstrating that frozen assets are legitimate.

Should Foreign Records Be Collected?

Yes.

Many foreign-investor cases cannot be properly explained using domestic banking records alone.

If the investment capital originated abroad, the defense may need documents demonstrating its history before entering Turkey.

The transaction trail should ideally explain:

where the money originated,

who owned it,

why it was transferred,

when it entered Turkey,

and what asset was purchased with it.

Can a Foreign Investor Challenge the Freeze From Abroad?

Potentially.

Depending on the procedural circumstances and authority granted to counsel, applications concerning asset restrictions may be pursued while the investor remains outside Turkey.

However, the underlying criminal investigation may separately involve a summons, statement requirement, arrest warrant or another measure.

The investor’s criminal procedural status should therefore be checked at the same time.

Can the Freeze Affect Residence or Citizenship Investments?

Potentially, an asset restriction can have practical consequences where the frozen property forms part of a broader investment, residence or citizenship-related transaction.

However, the criminal asset measure and immigration consequences are legally distinct matters.

Both should be examined independently rather than assuming one automatically determines the other.

Can Foreign Investment Treaties Become Relevant?

In exceptional cases involving qualifying foreign investments, international investment protections may deserve separate consideration, particularly where state measures are alleged to be arbitrary, discriminatory or otherwise inconsistent with applicable treaty protections.

However, the existence of a foreign investment treaty does not automatically invalidate a properly imposed criminal investigation measure.

The first line of defense will generally remain the available domestic criminal-procedure remedies.

International investment law becomes a separate and highly fact-specific analysis.

Can Constitutional Property Rights Be Invoked?

Yes.

Article 35 of the Constitution protects property rights.

The Constitutional Court emphasizes that seizure measures must not operate arbitrarily or unpredictably and that a fair balance must be maintained between the public interest and the burden imposed on the property owner. (Anayasa Mahkemesi)

This does not mean every asset freeze violates the Constitution.

It means that legality, legitimate purpose, procedural safeguards and proportionality all matter.

What About Good-Faith Foreign Investors?

Good faith can become particularly important where property was acquired from another person who later became subject to a criminal investigation.

The Constitutional Court emphasizes the importance of a connection between the owner’s conduct and the relevant illegality and recognizes the need for mechanisms protecting good-faith owners. (Anayasa Mahkemesi)

A foreign investor claiming good faith should preserve extensive acquisition documentation.

Due diligence performed before the transaction can become particularly valuable evidence.

Fifteen Steps for Challenging an Asset Freeze

1. Identify the criminal investigation and exact seizure order.
2. Determine the statutory basis for the restriction.
3. Identify every affected asset.
4. Determine whether the alleged offence falls within the applicable seizure framework.
5. Review whether the required evidentiary threshold has been established.
6. Examine the alleged connection between each asset and criminal proceeds.
7. Check whether applicable procedural requirements were followed.
8. Obtain financial and regulatory reports where procedurally accessible.
9. Trace the lawful source of investment capital.
10. Collect foreign and domestic banking records.
11. Establish independent corporate or third-party ownership where applicable.
12. Analyze whether the restriction is broader than necessary.
13. File a reasoned objection supported by documentary evidence.
14. Seek partial release where complete removal is not immediately achievable.
15. Continue reviewing necessity and proportionality if the measure remains in force.

The most effective strategy is usually to challenge the asset restriction asset by asset and transaction by transaction.

Frequently Asked Questions

Can a foreign investor’s assets be frozen in Turkey?

Yes. Foreign nationality does not prevent the application of lawful criminal asset-seizure measures. Article 128 can cover bank accounts, real estate, vehicles, receivables, securities, company shares and other assets when its requirements are satisfied. (Kararlar Bilgi Bankası)

Does an asset freeze mean my property has been permanently confiscated?

No. A seizure imposed as a criminal protective measure is generally temporary and should be distinguished from permanent confiscation. The Constitutional Court characterizes protective asset seizures as restrictions on the use of property while the measure remains in force. (Anayasa Mahkemesi)

Can company shares be frozen?

Yes. Company shares are expressly covered, and Ministry of Justice guidance explains that the relevant decision is communicated to company management and the commercial registry. (Rayp Adalet)

Can bank accounts be frozen?

Yes. Bank and other financial institution accounts fall within Article 128 where the applicable requirements are met. (Kararlar Bilgi Bankası)

Can real estate be affected?

Yes. Real estate is expressly covered, and the measure is implemented through an annotation in the property registry. (Rayp Adalet)

Can I object to an Article 128 asset freeze?

Yes. Ministry of Justice materials expressly confirm that these measures can be challenged through the applicable objection procedure. (Rayp Adalet)

Do I have to wait until the criminal trial ends?

Not necessarily. Courts can reconsider and lift asset restrictions when their legal conditions are no longer established. One Constitutional Court case records the lifting of a seizure after financial analysis failed to establish concrete findings connecting the assets to the alleged criminal activity. (Kararlar Bilgi Bankası)

What is the strongest evidence for a foreign investor?

Evidence establishing lawful ownership and the source of investment capital is often crucial. Foreign bank statements, acquisition documents, tax records, corporate accounts and transaction histories can help demonstrate that particular assets were not obtained from the alleged offence.

Can assets belonging to a third party be affected?

Potentially, yes, depending on the circumstances. However, ownership, good faith and the relationship between the property and alleged criminal conduct are important considerations under constitutional property-rights principles. (Anayasa Mahkemesi)

Can an excessively broad or prolonged asset freeze be challenged?

Potentially. Constitutional property-rights principles require a fair balance between the public interest and the burden imposed on the property owner and prohibit arbitrary or unpredictable interference with property. (Anayasa Mahkemesi)

Client-Focused Legal Support for Foreign Investors Facing Asset Freezing Orders in Turkey

An asset freeze affecting a foreign investor or company should be examined at several levels simultaneously. The defense should determine whether the correct statutory procedure was followed, whether the required evidentiary threshold exists, whether the allegedly criminal origin of each asset is supported by concrete evidence and whether the continuing scope of the restriction is proportionate.

This distinction can be decisive. The existence of suspicion concerning an individual does not automatically prove that every asset belonging to that person was derived from criminal conduct. Turkish case law includes proceedings in which asset restrictions were lifted because, despite suspicion concerning the alleged offence, sufficient concrete findings connecting the assets themselves to criminal proceeds were not established. (Kararlar Bilgi Bankası)

For foreign investors, financial tracing should begin immediately. International bank records, acquisition documents, investment agreements, corporate accounts, tax documents and historical transaction records can demonstrate that property originated from legitimate sources long before the alleged criminal conduct. Where company property or third-party assets are involved, independent ownership should also be documented carefully.

The constitutional dimension should not be overlooked. The Constitutional Court recognizes asset seizure as an interference with property rights and requires a fair balance between the legitimate public objective and the burden imposed on the owner. Measures should not operate arbitrarily or unpredictably. (Anayasa Mahkemesi)

Fırat Fesih Kaya Law Office assists foreign investors, shareholders, executives and international companies with asset freezing orders, bank account seizures, company share restrictions, real estate seizures, frozen receivables, third-party property claims, financial investigations, challenges to seizure decisions and criminal defense proceedings in Turkey.

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