The Money is Gone, But the Rights Are Not: How to Recover Assets Taken Abroad?

In a fraud case, money can be transferred to a foreign bank account within hours. Company assets can be transferred to a related foreign company, the deceased's money can be transferred to an investment account abroad, or the debtor, upon learning that a lawsuit will be filed against them, can transfer their real estate and company shares to entities they have established in another country.

The transfer of assets out of the country does not automatically extinguish the rights of the creditor or aggrieved party. However, the transfer of assets to the sovereign territory of another state prevents the direct enforcement of decisions made in Türkiye in that country. At this point, knowledge of Turkish law alone is insufficient; it is necessary to act in accordance with the laws of the country where the assets are located, the rules of international judicial assistance, and applicable international conventions.

Cross-border asset recovery is not a single type of lawsuit. This concept encompasses;

• Investigation and monitoring of assets,
• Temporarily freezing it,
• Determining legal ownership and the beneficial owner,
• The cancellation of fraudulent transfers,
• Recognition and enforcement of court or arbitration awards,
• Seizure and confiscation procedures in criminal investigations,
• The sale of the asset or its return to the rightful owner,

It is a multi-stage process that includes many stages.

Implementation guidelines prepared by the United Nations also acknowledge that international asset recovery consists of four basic stages: asset tracking and evidence gathering, asset freezing, confiscation or final recovery decision, and return of the asset.

First, the right question must be asked: Is it a debt or a crime?

The method used for cross-border asset recovery varies depending on the legal nature of the case.

An unpaid receivable arising from a sales contract, a current account debt between companies, or an unpaid loan is a private law dispute. In such cases, litigation, arbitration, provisional attachment, recognition and enforcement, and execution procedures can be applied.

Conversely, if the assets were acquired through fraud, breach of trust, embezzlement, bribery, fraudulent bankruptcy, forgery, organized crime, or money laundering, then criminal investigation, international criminal extradition, seizure, and confiscation mechanisms come into play.

The same event can have both private law and criminal law dimensions. For example, the transfer of money obtained with the promise of investment to foreign accounts;

• The fraud investigation,
• Regarding the request to seize the suspect's assets,
• A lawsuit for compensation for damages,
• Application for temporary suspension in a foreign country,
• To cancel fraudulent transfers,

They can be the subject at the same time.

Therefore, the idea that "we filed a complaint with the prosecutor's office, our money will be returned" or "we won the case, the money in the foreign country will be recovered directly" is incorrect. Criminal investigations and private law debt collection may need to be carried out in coordination.

Phase One: Tracking Down the Missing Property

Asset research is the beginning of debt collection

An effective recovery process cannot be carried out without knowing in which country, with which bank or company, and in whose name the assets are held.

The investigation should not be conducted solely based on the debtor's name. Assets should also be considered

• Spouse, child or close relative,
• Partner or employee,
• Related company,
• Shell company,
• Foundation or trust,
• Professional manager,
• Cryptocurrency wallet,
• An investment account that appears to belong to a third party,

It can be found on it.

Therefore, the apparent owner and the true economic owner of the asset must be distinguished. Alongside the question of "In whose name is it registered?", the investigation should focus on questions such as "Who provided the money, who controls the asset, and who benefits from its income?".

Which sources can be consulted?

Depending on the nature of the case, the following records may be investigated:

Bank account statements, international money transfer messages, trade registry records, company ownership structures, real estate and vehicle registries, ship and aircraft registries, trademark and patent registries, court and bankruptcy records, cryptocurrency platforms, customs documents, accounting records, and information on actual beneficiaries.

Within the scope of international criminal justice cooperation, the provision of bank records, accounting documents, company files, and commercial records may be requested; as well as the identification or tracking of earnings, vehicles, and other assets.

However, a private creditor does not have direct access to bank records in a foreign country. Due to bank confidentiality, personal data protection, and trade secret regulations, this information is mostly;

• Court order,
• Enforcement process,
• Evidence gathering,
• Bankruptcy administration review,
• Criminal investigation,
• Request for international judicial assistance,

It can be obtained through this method.

Does the pursuit end if the money changes form?

No. An asset investigation doesn't just try to find the initial money sent. It also investigates what the money was subsequently converted into.

For example, money sent from Türkiye;

• It was contributed as capital to a foreign company
• The property has been purchased
• Converted into a crypto asset,
• Transferred to an investment fund,
• The loan was given to another company,
• A yacht or vehicle has been purchased,
• Transferred to a trust or foundation structure,

it could be.

In this situation, even if the original money is no longer available, it may be possible to pursue the equivalent value of the replaced asset. However, the connection between the money flow and the subsequently acquired asset must be established through bank records, contracts, timing, transaction history, and other evidence.

Second Stage: Assets Must Be Frozen Immediately Once Found

Why should the identified asset be protected immediately?

Locating the asset does not mean it has been recovered. Once the debtor or suspect becomes aware of the investigation, they can transfer the asset to another account, company, or country within seconds.

Therefore, at the moment of existence;

• Lien,
• Interim injunction,
• Account freezing,
• Seizure,
• Prohibition of share transfer,
• Annotation on the title deed,
• Appointment of a manager or trustee,

Temporary protections such as these need to be evaluated.

The state where the assets are located generally handles transactions related to bank accounts or real estate within its own country through its own authorities. A precautionary attachment or seizure order issued in Türkiye does not automatically freeze assets in a foreign country. For the order to be enforced in the relevant country, a separate decision or judicial assistance procedure in accordance with that country's laws is required.

Temporary protection in private law disputes

In private law claims, a request for provisional protection is made by demonstrating the existence of the claim and the risk of asset concealment.

Payee;

• The basis of the debt,
• The amount of the debt,
• Its due date,
• Attempts by the debtor to transfer their assets,
• Foreign account and company connections,
• If there is a delay, the collection of the debt will be jeopardized

It must be documented.

Even if the main case is being heard in Türkiye, if the assets are located in a foreign country, a separate application for temporary protection may be required in that country. Some legal systems can grant protection orders for assets in their own country even if the main case is being heard abroad. The conditions for this are determined according to the domestic law of the relevant country.

Seizure in criminal investigation

Article 128 of the Code of Criminal Procedure allows for the seizure of immovable properties, vehicles, bank accounts, rights and receivables, company shares, safe deposit boxes, and other assets if there is strong suspicion that the crime under investigation or prosecution has been committed and that the assets were obtained as a result of this crime. The fact that the assets are in the possession of a person other than the suspect or defendant does not, in itself, prevent seizure.

This regulation does not apply limitlessly to every crime. The crimes listed in Article 128 of the Code of Criminal Procedure and the provisions in special laws must be taken into consideration. Many property crimes, such as fraud, breach of trust, fraudulent bankruptcy, drug trafficking, embezzlement, and bribery, are within the scope of this regulation.

In order for a seizure order issued in Türkiye to be enforced in a foreign country, a request for international judicial assistance must be prepared by the prosecutor's office or the court.

Third Stage: Recovery Through Private Law

Is a debt collection lawsuit sufficient on its own?

If the debt arises from a contract, tort, unjust enrichment, agency, partnership, inheritance, or another private law relationship, a judgment determining the debtor's liability must be obtained first.

However, when choosing the country where the lawsuit will be filed, one should not only consider the ease of filing the lawsuit. The following factors should be considered together:

• In which country is the debtor located?
• In which country is the evidence located?
• Does the contract include a jurisdiction or arbitration clause?
• In which country are the assets located?
• Can the decision be enforced in the country where the assets are located?
• In which country can temporary protection be obtained more quickly?
• Which law governs the statute of limitations?

Even if a decision made in the wrong country is legally valid, collection cannot be achieved if it is not recognized or enforceable in the target country.

Why are recognition and enforcement necessary?

A foreign court judgment cannot be enforced automatically in another country. It must be recognized or enforced in the state where the assets are located.

In Turkey, Article 50 of the Private International Law Act No. 5718 stipulates that the enforcement in Türkiye of judgments rendered by foreign courts in civil cases, which have become final according to the law of the state where they were rendered, is subject to an enforcement decision obtained from a Turkish court.

The enforcement request must include a certified copy of the foreign judgment, the certificate of finality, and certified translations thereof. The Turkish court examines factors such as reciprocity, the exclusive jurisdiction of Turkish courts, public order, and compliance with the right of defense.

As a rule, the enforcement court does not re-evaluate the foreign court's assessment of the merits of the dispute. The review focuses on whether the decision meets the enforcement requirements stipulated in the Private International Law Act.

The same logic applies to the enforcement of a Turkish court decision in a foreign country. It is necessary to investigate whether a treaty exists between the state where the decision will be implemented and Turkey, and what domestic legal provisions that state has regarding the recognition and enforcement of foreign judgments.

Can arbitration awards be used?

If a contract contains a valid arbitration clause, the dispute can be referred to an arbitration panel. Arbitration is an important tool, particularly in commercial disputes where the parties and their assets are located in different countries, as it allows for the international circulation of the decision.

However, obtaining an arbitration award does not automatically mean collection of the debt. The award must be enforced in the country where the assets are located and implemented through local enforcement authorities.

How to reverse fraudulent transfers?

If the debtor has transferred their assets to a third party, a payment order issued solely against the debtor may not be sufficient. The new owner of the asset must also be included in the lawsuit, or the transfer must be rendered ineffective for the creditor.

In Turkish law, it depends on the specifics of the case;

• Annulment of transaction under the Enforcement and Bankruptcy Law,
• Within the scope of the Turkish Code of Obligations, collusion refers to..
• Cancellation and registration of title deeds
• Unjust enrichment,
• Abuse of power of attorney,
• The responsibility of the company director,
• Lifting the corporate veil,

Such options may come into consideration.

If the assets are located in a foreign country, the claim of fraudulent transfer or concealment of assets from creditors is, as a rule, raised within the framework of that country's property, enforcement, bankruptcy, and conflict of laws regulations.

What happens if the person to whom the transfer is made acts in good faith?

The legal status of a third party who acquires property by paying the actual price and without knowing that the previous transaction was fraudulent may also be protected.

Therefore, not every foreign transfer can be characterized as "asset concealment." In the assessment;

• Transfer and the date the debt originated,
• The closeness between the parties,
• Transfer fee,
• Whether the price was actually paid,
• The debtor continues to use the property,
• The debtor's ability to pay after the transfer,
• Whether the new owner was aware of the transaction,

They should be examined together.

Fourth Stage: Recovery of Assets Through Criminal Law

Does filing a criminal complaint automatically result in a refund?

No. The primary purpose of a criminal investigation is to identify the crime and the perpetrator. While compensation for the victim is important, the fact that the prosecutor's office initiates an investigation does not automatically mean that the money will be paid to the victim.

The victim or person harmed by the crime;

• You should follow the investigation file
• You must apply to participate
• You must document the amount of damage
• The asset investigation and seizure requests must be substantiated
• If necessary, a lawsuit should also be filed
• The client should request legal assistance for assets located abroad.

The return of the seized property to the victim, either in kind or in monetary value, is not the same as its confiscation in favor of the state.

The difference between seizure and confiscation

Expropriation is a temporary protective measure. It prevents the transfer or destruction of the property; it does not permanently transfer ownership to the state.

Confiscation is a final security measure imposed by a court ruling.

According to Article 54 of the Turkish Penal Code, items used in the commission of a crime, allocated for the purpose of a crime, or resulting from a crime may be confiscated, provided they do not belong to bona fide third parties. If the items have been destroyed or disposed of, a decision may be made to confiscate an amount of money equivalent to their value.

According to Article 55 of the Turkish Penal Code, material benefits obtained from a crime, constituting the subject matter of the crime, or provided for the purpose of the crime, as well as economic gains resulting from their valuation or transformation, may be confiscated. However, for the confiscation of gains, it is necessary that the material benefit cannot be returned to the victim of the crime. If the asset itself cannot be reached, the value constituting its equivalent may be ordered to be confiscated.

This regulation demonstrates an important distinction between the victim's right to restitution and confiscation. If the money obtained through crime is identifiable and can be returned to the victim, the possibility of restitution should be considered first.

If the proceeds of crime have been converted into another commodity

Article 55 of the Turkish Penal Code covers not only the initial money obtained, but also the economic gain resulting from the investment or conversion of that money.

For example, with income from fraud;

• Immovable,
• Company share,
• Crypto asset,
• Gold,
• Investment fund,
• Vehicle,

If the money has been seized and a link between the new asset and the money is established, then an assessment for seizure and confiscation of these assets can be made.

Fifth Stage: International Criminal Justice Cooperation

Who applies to the foreign state?

The victim or their lawyer cannot directly send a binding seizure order to a foreign state. The request is prepared by the public prosecutor's office or court conducting the investigation and transmitted through international judicial cooperation channels.

In Law No. 6706 on International Judicial Cooperation in Criminal Matters, the central authority is designated as the Ministry of Justice. The Ministry evaluates the appropriateness of requests sent by Turkish judicial authorities to foreign states and the methods of cooperation to be applied.

Request for international judicial assistance;

• bilateral agreement between the state and Türkiye,
• to the multilateral international convention,
• The principle of reciprocity,
• the domestic law of the requested state,

It can withstand it.

What procedures can be requested from a foreign country?

To the extent permitted by the specific contract and the law of the foreign country;

• Investigating bank accounts,
• Receiving money transfer documents,
• Obtaining company and trade registry records,
• Identification of immovable properties and vehicles,
• Taking statements from witnesses or suspects,
• Searching,
• Freezing of accounts and assets,
• Implementation of the seizure order,
• Execution of a final confiscation order,
• Return of property,

It may be requested.

The Ministry of Justice states that in cases of economic, financial, and organized crimes with international connections, requests for judicial assistance must be prepared, specifying the relevant agreements, to investigate, identify, seize, and confiscate the assets of suspects or defendants located in foreign countries.

In cases of drug trafficking, money laundering, organized crime, and corruption, seizure and confiscation orders may be enforced in other signatory states within the framework of relevant international conventions.

What should be included in a request for legal assistance?

A successful request should not be general and abstract. A simple, unrestricted request to a foreign authority to "investigate all of the suspect's assets" is often insufficient.

As much as possible in the request;

• The crime under investigation,
• The chronology of events,
• Identity information of suspects and companies,
• The connection between assets and crime,
• Known bank, account, company, or address information,
• Money transfer dates and amounts,
• The nature of the requested transaction,
• Urgency and the risk of asset concealment,
• The decision was made by the Turkish authorities
• The contractual provisions to be applied,
• The evidentiary value of the requested information and documents,

It should be explained.

The foreign state usually applies its own procedural law. If the decision rendered in Türkiye does not meet the conditions required by the foreign state's law, the foreign authority may request a new suspension or seizure order from its own court.

Special Regime for the Recovery of Corruption Proceeds

Chapter V of the United Nations Convention Against Corruption provides for a specific international regime for the investigation, freezing, confiscation, and return of proceeds of corruption to the country of origin or to the rightful owners. The Convention considers the recovery of assets as one of its fundamental principles.

The Ministry of Justice also states that requests for the recovery of assets obtained through corruption offenses and transferred abroad should be prepared within the framework of Articles 51 to 59 of the Convention.

This approach relies primarily on intergovernmental cooperation. A private individual's ordinary commercial receivable does not fall under the scope of the Convention Against Corruption simply because the debtor is located abroad.

Sixth Stage: Return of Confiscated Assets

Will all confiscated money be returned to the victim?

No. The decision to seize and confiscate assets and the actual return of the assets to the victim are separate stages.

The confiscated assets;

• Which state it will belong to,
• Whether or not it will be returned to the victim,
• Whether it will be shared among states,
• How to protect the rights of third parties,
• The status of taxes, pledges, and previous liens
• How will administrative and sales expenses be covered?

This is determined according to the applicable international convention and the laws of the states concerned.

United Nations sources explain that assets linked to corruption can be returned to the source state, previous legitimate owners, or victims of the crime; however, in most cases, the state where the asset is located must first acquire legal control over the asset through confiscation.

Therefore, it is essential for the victim to establish their entitlement to compensation, the amount of damages, and the connection between the money and the crime in a timely manner during the investigation and proceedings in the foreign country.

Recovery through Bankruptcy and Liquidation

The bankruptcy of the debtor or foreign company alters the asset recovery process.

In this case, instead of individual seizure;

• Recording receivables in foreign bankruptcy proceedings,
• Request for asset investigation from the bankruptcy administration
• Cancellation of related party transactions,
• Liability lawsuit against managers,
• Reversing fraudulent transfers,
• Participation in the distribution schedule,

It may come up on the agenda.

The fact that a creditor has obtained a judgment in Türkiye does not automatically entitle them to participation in a foreign bankruptcy estate. The judgment must be recognized, the claim must be registered according to foreign bankruptcy law, and deadlines must be followed.

In bankruptcy law, in particular, the time limits for registering claims can be short. Waiting until the asset investigation is complete can jeopardize a creditor's right to receive a share of the distribution.

Trust, Shell Company, and the Real Beneficiary Issue

Cross-border assets are often not registered directly in the debtor's name.

Debtor;

• You can establish a foreign company,
• The company may distribute its shares to apparent partners called nominees
• It can use a trust or foundation structure
• You can list your relatives as beneficiaries
• They can exercise control through professional managers.

In these structures, the nominal owner and the actual controller can be distinguished. The investigation should focus not only on the shareholder listed in the registry;

• The provider of capital,
• The person who gave the bank instructions,
• Changing managers,
• Those who receive the income,
• Using one's assets,
• Bearing the ultimate economic risk,

The person must be identified.

However, the mere existence of a company or trust is not proof of illegality. It must be demonstrated with concrete evidence that the structure is merely for show, that the debtor maintains control, or that the transfers were made with the intention of harming creditors.

The Most Common Mistakes in Cross-Border Asset Recovery

Relying solely on a criminal complaint

The initiation of a criminal investigation does not guarantee that the victim's money will be found or returned. Civil litigation and temporary protection measures should also be considered.

First win the case, then look for assets

While the case drags on for years, assets may be transferred to other countries. Exploitative investigations and provisional protection should be planned before or during the litigation.

To think that the Turkish decision is directly applicable in every country

As a rule, a decision made in Türkiye cannot be enforced in a foreign country without recognition, enforcement, or a local court ruling.

To be content with the apparent owner

The fact that the assets are registered in the name of a spouse, relative, company, trust, or third party does not end the investigation. The flow of money, control, and the actual beneficiary must be examined.

Preparing an abstract request for international legal assistance

General requests that do not specify which account, company, property, or transaction needs to be investigated are at high risk of being rejected or remain unresolved for a long time.

Missing the statute of limitations and forfeiture periods

The statute of limitations for the underlying claim, the periods for annulment of the transaction, the periods for registration with foreign bankruptcy courts, and the periods for fraudulent transfer of ownership cases in foreign countries may differ.

Not taking recycling costs into account

Foreign legal fees, translation, apostille, expert witness fees, court fees, asset management, and sales expenses should be compared with the expected revenue.

Roadmap for Cross-Border Asset Recovery

1. Legal classification is made

It is determined whether the incident is solely a debt relationship or whether it involves suspicion of fraud, breach of trust, money laundering, or another crime.

2. An asset map is created

The debtor, their relatives, companies, bank connections, real estate, crypto accounts, and foreign entities are investigated.

3. Cash flow is organized chronologically

From the initial outflow of money to its final transformation into an asset, transfers, accounts, companies, and individuals are all tracked.

4. Authorized countries are determined

The country where the main case will be heard may be different from the country where the assets are located. Jurisdiction, jurisdiction, and applicable law are examined for each country.

5. Temporary protection is granted

If there is a risk of asset concealment, precautionary attachment, provisional measures, account freezing, or seizure procedures are requested without delay.

6. The main decision is made

Depending on the specific case, proceedings may be initiated for debt collection, compensation, restitution, annulment of disposition, cancellation of title deed, arbitration, or criminal proceedings.

7. The decision is enforced in the target country

Turkish court or arbitration decisions are recognized and enforced in the country where the assets are located. For criminal judgments, international judicial assistance and confiscation methods are used.

8. The asset is converted into cash or returned

The process of selling seized or confiscated assets, paying the creditor, returning them to the victim, or sharing them internationally is completed.

Conclusion

Cross-border asset recovery is not as simple as "finding the country where the money is and seizing it." The process requires the combined application of private law, criminal law, enforcement law, corporate law, bankruptcy law, and international judicial cooperation.

Four elements must be present for a successful recovery:

Identifying the assets, proving the asset's connection to the individual, making a timely decision to freeze the assets, and enforcing the decision in the country where the assets are located.

Transferring assets abroad does not terminate debt, hardship, or property rights. However, delay may lead to the transfer of assets to new accounts and structures, the involvement of bona fide third parties, and a decrease in the likelihood of collection.

Therefore, the correct strategy is not to file a lawsuit first and then search for assets years later; rather, it is to conduct the asset search, provisional protection, main lawsuit, and international enforcement processes from the outset as a single plan.

Winning the lawsuit establishes a right. Cross-border asset recovery then actually converts that right into money or property.