Not all money seized during a search can be frozen: when it should be returned and what to do if it is "lost"

One of the most common items that law enforcement officers seize during a search remains cash. In practice, there are often situations when, along with documents, equipment, or other items, investigators take all the cash found in a residence or office, regardless of whether it is related to the criminal proceedings.

However, the mere fact of seizing money does not mean that the state has the right to dispose of it or hold it indefinitely. The Criminal Procedure Code of Ukraine establishes clear rules about when such property can remain at the disposal of the pre-trial investigation body and when it must be returned to the owner.

In many cases, owners do not even know that the law gives them the right to demand the return of seized funds as early as the next day after the search if the investigator has not performed the procedural actions prescribed by law.

Article 1 of the First Protocol to the Convention for the Protection of Human Rights and Fundamental Freedoms enshrines the right of every person to peacefully enjoy their possessions. The state may restrict this right only in cases provided by law, in the presence of public necessity, and in compliance with the principle of proportionality. Therefore, prolonged retention of cash without freezing or without a proper procedural decision may be considered a violation of property rights.

The main rules for handling property seized during a search are defined by the Criminal Procedure Code of Ukraine. First of all, attention should be paid to part 7 of article 236 of the CPC of Ukraine. It provides that items and documents not explicitly specified in the ruling of the investigating judge as subject to seizure, and which do not belong to items withdrawn from civil circulation, are automatically considered temporarily seized property.

Simply put, if the court ruling did not contain permission specifically to seize personal funds, such money cannot be held just because it was found during the search. At the same time, article 131 of the CPC of Ukraine defines temporary seizure of property as one of the measures to secure criminal proceedings, and part three of article 132 of the CPC of Ukraine establishes an important condition: any further restriction of property rights must be based on reasonable suspicion and be necessary to achieve the purpose of the criminal proceedings.

A clear deadline for the investigator’s actions is set by part 5 of article 171 of the CPC of Ukraine. If property was temporarily seized during a search, the prosecutor or investigator with the prosecutor’s consent must no later than the next working day apply to the court for the imposition of a seizure. Article 169 of the CPC of Ukraine defines cases when temporarily seized property must be returned to the owner. In particular, if the court refused to impose a seizure, the seizure was canceled, or the investigator or prosecutor did not apply for a seizure within the time limits established by law, the property must be immediately returned – the owner must be promptly given back the property. This provision today is one of the most important guarantees of property rights protection during criminal proceedings.

When seized money can be recognized as physical evidence

After a search, investigators often claim that the seized cash is physical evidence in a criminal proceeding. However, this wording alone does not mean that the funds can be legally held indefinitely.

According to article 98 of the Criminal Procedure Code of Ukraine, physical evidence can only be those items that:

• were instruments of committing a criminal offense,
• retain traces of it,
• were objects of criminally unlawful actions,
• were acquired by criminal means,
• can confirm circumstances of the criminal proceedings.

Therefore, the investigator must not just state that money was seized but justify what connection exists between the specific funds and the criminal offense.

Very often, all the money found in an apartment or office is seized, although the case materials contain no evidence that they have a criminal origin.

According to article 98 of the CPC of Ukraine, physical evidence is recognized only as items directly related to the criminal offense. At the same time, part three of article 132 of the CPC of Ukraine requires that any restriction of property rights be based on reasonable suspicion and be necessary to achieve the purpose of the criminal proceedings.

Moreover, articles 276–278 of the CPC of Ukraine define the procedure for notifying a person of suspicion. Reasonable suspicion is recognized as such if there are facts or information that can convince an objective observer that the person in question could have committed an offense within the criminal proceedings, and this can be confirmed by the suspicion presented according to articles 276-278 of the CPC of Ukraine.

Can all money be seized if the court allowed searching for "funds obtained by criminal means"?

Rulings of investigating judges often contain a general phrase permitting the seizure of "cash obtained by criminal means". After that, during the search, law enforcement often seize all found cash – regardless of its origin.

However, if the investigating judge’s ruling on the search permits the seizure of funds obtained by criminal means, it is important to record this during the investigative action itself in the search/inspection protocol and by technical means (video recording).

"The ruling permitting the search of a residence or other possession of a person must contain a list of items, documents, or persons for which the search is conducted," states paragraph 6 of part 2 of article 235 of the CPC of Ukraine.

Thus, according to the requirements of paragraph 1 of part 5 of article 173 of the CPC of Ukraine, the motion for seizure must specify the list of property.

Courts proceed from the fact that the mere permission to search for "funds obtained by criminal means" does not automatically grant the right to seize any money found during the search. To restrict property rights, law enforcement must prove that these funds are related to the criminal proceedings. If there is no such connection, the seizure effectively becomes an unjustified interference with property rights guaranteed by article 41 of the Constitution of Ukraine.

Therefore, during court proceedings, the issue of individualizing seized funds, their origin, and the possibility of establishing a connection between specific bills and the criminal offense is increasingly examined.

How to return money after the seizure is lifted: step-by-step algorithm

After the investigating judge lifts the seizure on the seized funds, many owners believe that the money will be automatically returned. In reality, this is far from always the case.

In practice, people often face delays in the procedure, formal refusals, or even notifications that the funds have been lost. It is not worth waiting for the law enforcement agency to voluntarily execute the court decision but to act actively.

Step 1. Submit a written application for the return of property. After the ruling lifting the seizure has entered into legal force, you must contact the investigator or prosecutor with a written demand to return the seized funds. The right to demand the return of property arises from articles 169, 170, and 174 of the CPC of Ukraine, which regulate the procedure for terminating the seizure of property and its return to the lawful owner.

It is advisable to attach to the application: a copy of the court ruling lifting the seizure, documents confirming ownership of the funds (if available), bank account details if the funds are to be transferred non-cash.

Step 2. Check where the money is actually located. By law, seized cash that is not the subject of a crime and does not contain its traces should not lie in the investigator’s safe for years. Paragraph 21 of the Procedure for storing physical evidence, approved by the Cabinet of Ministers of Ukraine Resolution No. 1104 dated November 19, 2012, obliges transferring such cash to an authorized bank for crediting to a special deposit account no later than the next day.

With this information, it is possible to trace the movement of your funds. Therefore, to determine the location of the funds, it is necessary to immediately submit a series of lawyer’s inquiries.

If this is not done, it may already indicate a violation of the rules for storing physical evidence.

Step 3. If the money is not returned – appeal the inaction. Article 100 of the CPC of Ukraine regulates the handling of physical evidence. It provides that physical evidence must be stored only until the need for their use in criminal proceedings ceases. If the property is not needed for evidence or there are no legal grounds for its further retention, it must be returned to the lawful owner.

If after receiving the court ruling the law enforcement agency does not voluntarily comply, the owner has the right to file a complaint with the investigating judge.

This possibility is provided by article 303 of the CPC of Ukraine, which allows appealing the inaction of the investigator or prosecutor during the pre-trial investigation. The investigating judge may oblige the pre-trial investigation body to comply with the law and return the property to the owner.

If the money has already disappeared

The most difficult situation arises when, after lifting the seizure, it turns out that the seized funds have actually been lost. In this case, the person can no longer receive their specific banknotes, but they have the right to demand compensation for the damage caused.

The practice of the Supreme Court shows: if the law enforcement agency did not ensure proper storage of the seized property, the state bears responsibility for this.

This approach was confirmed by the Supreme Court in the ruling dated May 6, 2026, in case No. 752/29491/21, where the owner was awarded over 1.29 million UAH in compensation after the loss of funds seized during the search. The "Judicial and Legal Newspaper" reported details of this case.

In summary, returning money after a search often requires active actions by the owner. If funds were seized without proper grounds or the investigator did not formalize the seizure within the established deadlines, they can be demanded back. The main thing is not to delay, to document all violations, and to use the legal mechanisms of protection provided by law. In many cases, timely appeal to the court allows the return of seized property.

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