White-collar crime is a term that has evolved significantly since its introduction in criminology and legal studies. Unlike conventional crimes that involve physical violence or property damage, white-collar crimes are primarily financially motivated and committed through deception, fraud, or abuse of power.

Definition of White-Collar Crime

The concept of white-collar crime was first introduced by Edwin Sutherland in 1939, defining it as “a crime committed by a person of respectability and high social status in the course of their occupation.” While this definition remains influential, modern legal frameworks have expanded its scope to include corporate misconduct, financial fraud, and regulatory violations. White-collar crime is generally characterized by its non-violent nature, the fact that it is committed within an occupational context by professionals, executives, or public officials, and that it involves deceptive practices such as fraud, manipulation, misrepresentation, or breach of fiduciary duty. Legal scholars and international regulatory bodies such as Interpol, the UN, and the OECD define white-collar crime broadly to include offenses that violate economic, financial, or corporate laws, often affecting multiple stakeholders.

Scope of White-Collar Crime

The scope of white-collar crime extends across various industries and sectors, with significant economic and social implications. It can be classified into several major categories.

Financial and corporate crimes typically involve fraud, embezzlement, and insider trading, impacting businesses, investors, and the economy. Corporate fraud includes misrepresentation of financial statements, false accounting, and deceptive business practices. Securities fraud involves insider trading, stock manipulation, and misleading financial disclosures to investors. Money laundering conceals illicit funds through complex financial transactions to integrate them into the legitimate economy.

White-collar crimes also occur in the public sector, involving corruption, abuse of power, and bribery. Bribery and extortion refer to unlawful payments to influence officials or force compliance. Public procurement fraud involves manipulating government contracts and bidding processes for illicit gain. Abuse of office occurs when political or administrative authority is used for personal financial benefits.

Cyber-enabled white-collar crimes

With the rise of digital transactions, cyber-enabled white-collar crimes have increased, affecting individuals, corporations, and governments. Identity theft and fraud involve stealing personal or financial data to commit fraudulent transactions. Phishing and cyber fraud use deceptive schemes to extract sensitive information from individuals or businesses. Data breaches and insider cybercrime occur when unauthorized access is gained to corporate or government networks for financial gain.

White-collar crime extends to the healthcare sector, where fraudulent practices impact patients and insurance systems. Insurance fraud includes filing false claims for medical treatments or services not provided. Pharmaceutical fraud involves misrepresenting drug effectiveness, price manipulation, and illegal distribution. Medicare and Medicaid fraud result from overbilling or misusing public health funds for personal gain.

Certain white-collar crimes relate to environmental violations and corporate negligence, leading to public harm. Illegal dumping and pollution crimes occur when environmental regulations are violated to cut costs. Corporate negligence in safety standards happens when workplace safety protocols are ignored, leading to accidents. False green marketing, or greenwashing, misleads consumers about a company’s environmental practices.

Distinction Between White-Collar and Other Crimes

White-collar crime is distinct from traditional street crimes in several ways. It typically involves professionals, executives, or officials rather than lower-income offenders. It focuses on fraud, deception, and manipulation rather than direct physical violence. Cases often involve corporate law, financial regulations, and international compliance frameworks. Enforcement requires specialized financial expertise, forensic accounting, and cross-border cooperation.

The Global Impact of White-Collar Crime

The consequences of white-collar crime are far-reaching, including significant economic losses, erosion of public trust, and regulatory and legal reforms. Economic losses amount to billions of dollars annually due to financial fraud, corporate misconduct, and cybercrime. Scandals in government, finance, and corporations reduce confidence in institutions. Governments impose stricter laws, including anti-money laundering (AML) regulations, corporate transparency laws, and cybercrime directives.

White-Collar Crime in Turkish Law

White-collar crime in Turkey is regulated under various legal frameworks, primarily through the Turkish Penal Code (TPC) No. 5237, as well as other legislative instruments such as the Turkish Commercial Code, Capital Markets Law, Banking Law, and Anti-Money Laundering (AML) Law. These laws define, categorize, and prescribe penalties for financial crimes, corruption, and regulatory violations. White-collar crime in Turkey encompasses offenses committed in both public and private sectors, affecting financial stability, public trust, and economic development.

Key Provisions Under the Turkish Penal Code

Several offenses falling under the umbrella of white-collar crime are explicitly defined and penalized within the Turkish Penal Code (TPC) No. 5237. These include:

• Fraud (Dolandırıcılık) is regulated under Article 157, which criminalizes obtaining unlawful benefits through deception. Aggravated fraud under Article 158 applies to cases involving public institutions, banks, insurance companies, and vulnerable individuals, with stricter penalties.
• Embezzlement (Zimmet Suçu), under Article 247, criminalizes public officials who misappropriate funds or assets entrusted to them. Those found guilty face imprisonment and restitution obligations.
• Bribery (Rüşvet) is covered under Article 252, which prohibits both offering and receiving unlawful benefits between private entities and public officials. The law extends to intermediaries facilitating bribery.
• Forgery and Document Falsification (Resmî Belgede Sahtecilik), addressed in Articles 204 and 207, penalizes the fabrication or unauthorized alteration of official documents, which is commonly linked to corporate fraud and tax evasion.
• Money Laundering (Suçtan Kaynaklanan Malvarlığı Değerlerini Aklama) is defined under Article 282 as disguising the origins of illicit funds through financial transactions. Turkey’s Financial Crimes Investigation Board (MASAK) is the primary enforcement body responsible for investigating and prosecuting money laundering offenses.
• Bid Rigging (İhaleye Fesat Karıştırma) is defined under Article 235, involves manipulation of public tenders and procurement processes to provide unlawful advantages to certain individuals or entities. It carries severe criminal penalties.

White-Collar Crimes Regulated Outside the Turkish Penal Code

Many financial and regulatory offenses are governed by separate legislation outside the Turkish Penal Code. These laws focus on preventing economic crimes, ensuring financial market stability, and regulating corporate governance.

Insider Trading and Market Manipulation (Piyasa Dolandırıcılığı) is defined under Article 6362 of Capital Markets Law. These offenses are closely related to general white-collar crimes and attract strict financial penalties and possible imprisonment.

The Banking Law regulates financial institutions to ensure transparency, prevent fraud, and combat financial crimes. It outlines offenses such as fraudulent banking activities, unauthorized financial transactions, and money laundering.

Law on Prevention of Laundering Proceeds of Crime (Suç Gelirlerinin Aklanmasının Önlenmesi Kanunu – Law No. 5549) establishes anti-money laundering (AML) obligations, requiring financial institutions to conduct due diligence, report suspicious transactions, and comply with international AML standards.

Turkish Commercial Code (Türk Ticaret Kanunu – Law No. 6102) imposes obligations on corporations regarding financial transparency, accounting practices, and ethical business conduct. It includes provisions on fraudulent financial reporting, unfair competition, and corporate misconduct.

Public Procurement Law (Kamu İhale Kanunu – Law No. 4734) governs public procurement processes and aims to prevent corruption, bid rigging, and mismanagement in government contracts.

Law on Protection of Personal Data (Kişisel Verilerin Korunması Kanunu – Law No. 6698) regulates the handling and protection of personal data. Violations related to unauthorized data access, misuse of personal information, and digital fraud can result in heavy administrative penalties and criminal liability.

Enforcement and Sanctions

White-collar crime enforcement in Turkey involves multiple agencies, including MASAK (Financial Crimes Investigation Board), BDDK (Banking Regulation and Supervision Agency), and the Capital Markets Board (SPK). These authorities impose criminal sanctions, administrative fines, and business restrictions. Severe cases result in asset confiscation, company dissolution, or international legal cooperation for extradition.

Sanctions for white-collar crimes vary from criminal penalties, administrative fines, asset confiscation, and business restrictions to long-term imprisonment for serious offenses.

Legal Services

Bıçak provides comprehensive legal services in the field of white-collar crime, assisting both corporations and individuals in navigating the complexities of financial and corporate crime investigations. Our legal services include:

• Criminal Defense & Litigation: Representing clients in court proceedings related to fraud, embezzlement, bribery, money laundering, and corporate misconduct.
• Regulatory Compliance & Advisory: Assisting businesses in implementing compliance programs that adhere to Turkish and international financial regulations.
• Internal Investigations: Conducting internal corporate investigations to detect and prevent financial crimes before they escalate into legal disputes.
• Crisis Management & Legal Strategy: Advising corporate clients on handling government investigations, regulatory inquiries, and potential litigation risks.
• Corporate Governance & Risk Assessment: Helping organizations strengthen their corporate governance framework to minimize the risk of legal violations.
• Cross-Border Financial Crime Defense: Assisting multinational companies with cross-border regulatory compliance, extradition proceedings, and international financial crime defense.

Our firm combines legal expertise with industry-specific knowledge to provide tailored legal solutions for businesses, financial institutions, and individuals facing allegations or regulatory scrutiny in the realm of white-collar crime. Our expertise extends to handling cross-border white-collar crime cases, where we collaborate with international legal teams to navigate extradition, mutual legal assistance treaties (MLATs), and sanctions compliance. Backed by a team of experienced attorneys, forensic experts, and financial analysts, Bıçak is committed to delivering proactive, discreet, and results-driven legal representation tailored to the unique challenges of white-collar crime defense in Turkey.