The 12th Judicial Package and IBAN Victims: Sentence Reduction for Account and Card Lenders

With the recent digitalization of banking transactions, fraud methods have also taken on different dimensions. One of the most common methods is using third-party bank accounts (IBAN) or credit/debit cards as payment channels in fraudulent acts. Under existing legislation, individuals who lend their accounts to others—commonly known as "IBAN Victims" or "Card Victims"—were prosecuted as principal perpetrators of fraud, facing severe prison sentences.

With a historic amendment made to the Turkish Penal Code (TCK) within the scope of the 12th Judicial Package accepted by the TGNA Justice Commission, a highly significant sentence reduction is introduced for individuals whose contribution to the crime is limited only to lending their bank accounts or cards.

1. What is the New Regulation and What Does the New Paragraph Added to TCK 158 Say?

In the current penal policy, the owners of the accounts where fraud networks collected money were sentenced to punishments as severe as the actual perpetrators. The new legal amendment added to Article 158 of the TCK aims to rectify this inequality.

Accordingly, if a person, with the aim of providing an unfair benefit to themselves or someone else, only lends or gives payment instruments such as bank or credit cards, or the mandatory credentials (IBAN, password, account details) that enable the use of accounts with banks, brokerage houses, payment service providers, or crypto asset service providers, the sentence to be given for the principal fraud crime will be reduced by half (1/2).

2. Who Cannot Benefit from the Sentence Reduction?

The introduced reduction regulation does not mean that every person renting or lending their account will be directly saved from punishment. The boundary of the sentence reduction is defined as "limited only to the act of giving to someone else." Therefore, if the person's contribution to the crime exceeds lending the account or card, the reduction will not apply. Cases that cannot benefit from the sentence reduction include:

• Those who personally plan or organize the fraudulent act,
• Those who directly communicate with the victim via phone, social media, or in-person to perform the deceptive actions,
• Those who manage the transfer traffic of the money obtained from the crime and physically withdraw the money from ATMs,
• Those who play an active role within a criminal organization or an organized fraud ring,
• Intermediaries who encourage or organize others to open accounts or issue and sell cards.

3. Which Crime Types Does the Regulation Cover?

The temporary text accepted in the TGNA Justice Commission states that this sentence reduction will cover not only qualified fraud but also simple fraud. In this direction, the regulation:

• TCK Art. 157: Within the scope of the simple fraud crime,
• TCK Art. 158: Within the scope of the qualified fraud crime committed through the use of information systems, banks, or credit institutions as instruments,

will find an area of application only for defendants whose accounts were used or who provided payment instrument information.

4. What Will IBAN Victims Who Received Sentences Before the Regulation Do?

A temporary protection mechanism has been established for defendants who were prosecuted and sentenced before the date of entry into force of the law, but whose files have not yet become final:

• Files at the Appeal and Court of Cassation (Yargıtay) Stage: The conviction decisions of defendants whose files are at the regional court of appeal (istinaf) or Yargıtay stage will be reversed and sent back to the court of first instance. The local court will re-evaluate the defendant's role and establish a reduced sentence.
• Convicts Whose Sentences Have Become Final: The situations of individuals whose sentences became final and are at the execution stage before the judicial package entered into force will be re-handled through adaptation trials, either on file or through hearings. It is of vital importance for these individuals to submit a petition for an adaptation trial to the local court.

5. Compensation of Damages and Active Repentance (TCK 168) Facility

With the 12th Judicial Package, a special right has been granted to convicts at the execution stage to compensate the victim's damages. Convicts who fully compensate the victim's damages within 6 months from the notification to be made to them by the court will also benefit from TCK 168 active repentance provisions in addition to the new sentence reduction. This will significantly shorten the execution times.

6. Concrete Sentence Calculation Examples

The effect of the new legal regulation on sentence amounts is as follows:

• Under the Current System: A minimum of 4 years in prison under TCK 158/1-f (Qualified fraud through information systems) was given directly to the account owner.
• Under the New Regulation (50% Reduction): When it is determined that the defendant only lent their bank account, this sentence will be cut in half and reduced to 2 years.
• In Case of Damage Compensation (Active Repentance): If the victim's damage is compensated during the trial stage, the sentence can be reduced from 2 years to 1 year in accordance with TCK 168.
• Discretionary Mitigation (TCK 62): With the court's application of a good conduct reduction, the sentence can ultimately drop to 10 months in prison. This sentence amount will also remain within the limits of suspension of the announcement of the verdict (HAGB) or deferment.

7. Frequently Asked Questions

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