Money laundering is the act of introducing proceeds from crime into the financial system by giving them a legal appearance. In a metropolis like Istanbul, with its developed financial, commercial, and technological infrastructure, laundering attempts through banks, payment institutions, crypto asset platforms, real estate, and luxury consumption channels can become more sophisticated.
What is Money Laundering?
Money laundering is the process of subjecting assets derived from criminal activity to various transactions in order to conceal their source or give them a legal appearance. Article 282 of the Turkish Criminal Code regulates laundering as an independent crime under the heading “laundering of assets derived from crime.” This crime covers not only cash but also movable/immovable property, receivables, precious metals, crypto assets, and other economic values. A typical scenario involves three stages: placement, layering, and integration. The perpetrator attempts to introduce the assets into the financial system, erase the source trail through multiple layers of transactions, and then integrate them into legitimate-looking economic activities.
For money laundering to occur, assets derived from the underlying crime (e.g., drug trafficking, bribery, aggravated fraud, organized crime, etc.) must be deliberately converted or concealed. The perpetrator must have the intent to both know that the assets are derived from crime and to create an appearance of legitimacy. In practice, cases of “negligence despite having the duty to know” may trigger administrative sanctions and reporting obligations, particularly for employees and agents of financial institutions.
Under What Circumstances Are Money Laundering Investigations Initiated in Istanbul?
Investigations in Istanbul are mostly triggered through financial intelligence flows and risk-based audits. MASAK-regulated entities such as banks, payment and electronic money institutions, portfolio management companies, crypto asset service providers, currency exchange offices, and precious metal brokerage firms must file a Suspicious Transaction Report (STR) without delay upon detecting a suspicious transaction. STRs may be triggered by indicators such as unusual amounts/balance movements, transaction structuring, indirect funding through third parties, high-value transfers inconsistent with economic and income profiles, layered flows related to foreign entities, and accelerated value transfers via virtual POS or crypto bridges.
Investigations may also be initiated as a result of tax audits, customs and trade inspections, sector controls coordinated by the BTK/BDDK/TCMB, reports made to prosecutors, and requests for international judicial assistance. Istanbul’s free zones, airports, ports, and tourism centers are under increased scrutiny due to the high volume of cash movement, trade in valuable goods, and multinational money transfers. During this process, prosecutors may resort to protective measures such as seizure of assets, freezing of bank accounts, imaging of digital materials, and interception of communications, within the scope of the provisions of the Criminal Procedure Code and the Turkish Penal Code.
Money Laundering Regulations in the Turkish Penal Code and MASAK Legislation
Article 282 of the Turkish Criminal Code defines the criminal framework for money laundering offenses, while Law No. 5549 on the Prevention of Money Laundering and secondary regulations (communications, guidelines) outline the obligations and administrative sanctions. In this context, obligations such as identity verification (KYC), ongoing business relationship and transaction-based risk analysis, suspicious transaction reporting, training and internal auditing, appointment of a compliance officer, and record and document retention are essential for obligated entities. Violations may result in serious consequences, including administrative fines and suspension of activities.
In Istanbul specifically, regulations by the Central Bank of the Republic of Turkey (CBRT), the Banking Regulation and Supervision Agency (BRSA), and the Capital Markets Board (CMB) regarding banking, capital markets, payment services, and crypto asset service providers are interpreted in conjunction with MASAK guidelines. Compliance with the Travel Rule in crypto asset transfers, high-risk country/counterparty screening, compliance with sanctions and terrorist financing lists (OFAC, EU, UN, etc.), beneficial owner identification, PEP screening, and intra-group information sharing protocols have become more visible in internal policies as of 2025.
Elements of Money Laundering Offenses and the Proof Process
The material element of the crime is the deliberate concealment, transfer, conversion, or legitimization of property value derived from the crime. Intent is required for the moral element; the perpetrator must act with knowledge that the value is derived from the crime. During the evidentiary process, the prosecution conducts expert examinations of financial records, digital traces, communication content, accounting documents, customs declarations, and data sets related to international money movements to establish the causal link between the underlying crime and the property value, the layers of transactions, and the perpetrator’s intent.
In practice, multi-company and account networks, nominee structures appearing to be third parties, trade-based money laundering (fake/inflated invoices, misleading shipping documents), successive contracts, and crypto asset mixers can make proof difficult. In contrast, chain analysis, comparative price/delivery tests, IP and device fingerprint matching, beneficial ownership analysis, and international legal assistance enhance the strength of evidence. On the defense side, arguments such as the absence of a predicate offense, the legitimacy of the source of value, compliance with commercial practices, the reasonable implementation of compliance processes, and the absence of intent are put forward.
Increased Audits for Financial Institutions in Istanbul in 2026
By 2026, supervisory practices for financial institutions in Istanbul will focus on three areas: risk-based field inspections, digital surveillance, and international coordination. Risk-based field audits have been intensified at banks, payment institutions, and crypto asset service providers in line with customer portfolio, transaction volume, product diversity, and geographical exposure. In digital surveillance, data-driven anomaly detection, real-time transaction monitoring, and machine learning-supported suspicious pattern detection approaches have become widespread.
Under the heading of international coordination, information sharing with foreign financial intelligence units has accelerated in terms of cross-border transfers, parallel account movements, and layered transactions; integration with sanctions and PEP lists has been tightened. In this context, practical recommendations for obligated entities in Istanbul are as follows:
- Identification of the beneficial owner and keeping the customer’s occupation/income profile up to date; conducting in-depth due diligence (EDD) in complex structures.
- Calibration of transaction monitoring scenarios: thresholds and alerts for fragmentation, fast entry-exit, chained transfers, crypto-fiat bridges, and high-risk country routes.
- Travel Rule and international sanctions screening, including record retention, alert management, and closing notes that leave evidence.
- Internal training and compliance monitoring: case-based training for frontline personnel; periodic compliance reports to the board of directors.
- Incident response plan: Scenario-based roadmaps for exceeding SIB thresholds, account freezing, media management, and legal defense coordination.
Seizure of Assets and Bank Account Freezing in Money Laundering Offenses
One of the most common measures encountered in money laundering investigations is the freezing of the suspect’s bank accounts and seizure of their assets. These measures are implemented to ensure the investigation can proceed smoothly and to prevent the disposal of assets allegedly obtained through criminal activity. Under the Criminal Procedure Code (CMK) and related legislation, prosecutors can obtain a court order to temporarily freeze accounts when there is evidence of reasonable suspicion. During this process, protective measures can also be applied to real estate, vehicles, company shares, cash, and crypto asset wallets.
In a city like Istanbul, where financial activity is intense, asset preservation measures can be implemented particularly quickly. Banks and financial institutions are required to report suspicious transactions under MASAK obligations, and these reports often form the preliminary stage of account freezing decisions. However, the application of asset seizure measures does not imply conclusive evidence that a crime has been committed; it is merely a temporary security measure during the investigation process. Therefore, individuals who are suspected or victimized may seek legal recourse to have the decision lifted or limited. In this context, swift and informed legal representation is of critical importance.
Penalties for Money Laundering Offenses and Possible Legal Consequences
Money laundering is regulated under Article 282 of the Turkish Penal Code, and both imprisonment and fines may be imposed on the perpetrator. The severity of the penalty may vary depending on the nature of the crime, the intent of the perpetrator, the connection to the underlying crime, and the scope of the chain of transactions. Aggravating factors include the crime being committed in an organized manner, having an international dimension, the laundering of a large amount of assets, and the involvement of public officials in the crime.
In addition to criminal prosecution, the crime of money laundering is a serious offense that can be recorded on a criminal record and can directly affect a person’s social, commercial, and professional life. Furthermore, in certain professions (e.g., the financial sector, public service, security fields), criminal records and judicial records directly affect one’s eligibility to work. Therefore, even being charged with this crime can have serious consequences. For this reason, it is vitally important to develop an effective and professional defense strategy both during the investigation and prosecution stages.
Compliance Obligations for Companies and Businesses
Combating money laundering is a process that directly concerns not only individuals but also companies and financial institutions. In particular, banks, payment institutions, currency exchange offices, crypto asset service providers, jewelers, and sectors such as sports and luxury automotive are subject to strict supervision by MASAK. These institutions are required to operate customer due diligence (KYC), risk profiling, suspicious transaction reporting, transaction monitoring, record keeping, and internal control mechanisms in accordance with procedures.
Failure to implement compliance processes or implementing them inadequately may result in both administrative fines and criminal liability for company executives. As of 2025, the digital monitoring aspect of financial regulations in Istanbul has been further strengthened; the technical infrastructure, training programs, and documentation processes of internal compliance units constitute important evaluation criteria in audits. Companies must have not only formal procedures but also an effective risk management culture.
Defense Strategies and the Rights of Suspects in Money Laundering Investigations
Individuals subject to money laundering investigations have certain rights from the outset of the investigation. The suspect or defendant has fundamental rights such as requesting a lawyer during the questioning stage, learning the reasons for the charges, reviewing the case file, presenting a defense, and appealing. Therefore, the individual must be aware of their right to remain silent during the investigation and avoid making false statements during the defense process.
An effective defense strategy is based on obtaining documents related to the source of assets, explaining transaction processes within a commercial logic framework, organizing financial records in a manner suitable for expert examination, and making the correct legal objections according to the course of the investigation. Particularly in Istanbul, where commercial and financial transactions are multi-layered, the defense must include not only legal but also accounting and economic analysis. Therefore, it is a critical advantage for the attorney to be experienced in interpreting financial processes and commercial structures.
The Importance of Professional Legal Support in Money Laundering Crimes in Istanbul
Istanbul is one of the cities where money laundering investigations are most frequently conducted due to the high volume of financial transactions and its role as a hub for international capital flows. Consequently, investigation processes are more technical, evidence reviews are more comprehensive, and protective measures are implemented more swiftly. In such a complex structure, professional legal representation is not limited to defense; it requires a multifaceted approach that includes evaluating evidence, appealing against freezing and seizure measures, protecting commercial activities, managing reputation, and identifying internal company risk scenarios.
During this process, it is crucial that the lawyer is an expert in criminal law, financial regulations, and MASAK compliance mechanisms. Professional support ensures that the process is managed correctly for both individuals and companies, reducing the economic and social damage that an investigation can cause.