AI-generated illustration

The Istanbul Chief Public Prosecutor's Office has ordered asset restrictions against three Pasifik Holding board members as part of an ongoing fund investigation into capital markets transactions.

Fatih Erdoğan, Abdulkerim Fırat and Mehmet Erdoğan face controls on transfers, sales, mortgages, account closures and large withdrawals, with suspicious activity to be reported to prosecutors and to MASAK.

Scope of the asset restrictions

The Istanbul Chief Public Prosecutor's Office said its investigation into funds linked to capital markets transactions is continuing. In a letter sent to the relevant institutions, the office named Pasifik Holding Chairman Fatih Erdoğan, Vice Chairman Abdulkerim Fırat and board member Mehmet Erdoğan.

The letter requires notification and precautionary measures covering any asset-reducing transaction the three seek to carry out at the relevant institutions, including transfers, assignment, sales, donations, mortgages and pledges, account closures, large cash withdrawals and high-value EFT or wire transfers.

Banks and notaries told to notify prosecutors

If an unusual transaction is requested by the three men, the relevant units and member institutions must consult the prosecutor's office before completing it, and must not carry out any disposal of assets without first seeking an opinion.

The letter asked that routine transactions, such as professional activities, salary, invoice and institutional payments and the use of pension income, not be blocked in a way that causes hardship. It requested immediate notice of suspicious transactions outside normal activity that are striking in value or frequency, reduce assets or appear sham.

The Banking Association of Turkey, the Participation Banks Association of Turkey and the Union of Turkish Notaries were told to circulate the notice to all member banks and notary offices and report back to the prosecutor's office that the announcement was made.

Freeze request and reporting to MASAK

Capital markets instruments held in the accounts of Fatih Erdoğan, Mehmet Erdoğan and Abdulkerim Fırat are to be frozen by the relevant institutions, with the file and the alleged offences taken into account.

Transaction requests and completed transactions that reduce the assets of the three individuals must also be reported without delay to the Financial Crimes Investigation Board (MASAK) under the law on the prevention of laundering of proceeds of crime. Confirmation of those filings is to be sent to the prosecutor's office.

Key takeaways

• The Istanbul Chief Public Prosecutor's Office ordered asset restrictions against Fatih Erdoğan, Abdulkerim Fırat and Mehmet Erdoğan of Pasifik Holding.
• Transfers, sales, mortgages, account closures and large withdrawals by the three require notification and prior consultation with prosecutors.
• Capital markets instruments in their accounts are to be frozen, and suspicious transactions must be reported to MASAK.
• Banks, participation banks and notaries must circulate the notice to members and confirm it to the prosecution.