US drops Halkbank prosecution amid alleged ties to Iranian business

US Prosecutors Reach Settlement with Turkish Bank Over Sanctions Case

The United States Department of Justice has filed a document with the US District Court for the Southern District of New York, stating that resolving a criminal case against Turkey’s state-run Halkbank is in the “best interests” of the US government. The case, which had been ongoing since 2019, accused Halkbank of participating in a multibillion-dollar scheme to evade sanctions against Iran.

According to the document, unique and extraordinary national security and foreign policy considerations contributed to the settlement. Specifically, Turkey’s assistance in securing the October ceasefire deal between Israel and Hamas and the release of Israeli captives held in Gaza played a role in the decision.

As part of the agreement, Halkbank will engage a mutually agreed-upon third party to review its sanctions and anti-money laundering compliance. The bank will also refrain from conducting or facilitating transactions with the Iranian government, Iranian people, or Iranian entities involving US people or financial institutions during the period of the agreement.

Halkbank has stated that it had not admitted to criminal wrongdoing and would not pay any penalties under the settlement, which requires judicial approval. The bank’s Istanbul-listed shares rose 10 percent following the announcement.

The settlement marks a significant development in relations between Washington and Ankara, which have been strained due to the ongoing case. Turkey had vigorously protested against the US case, with President Recep Tayyip Erdogan calling it “ugly” and “unlawful”.

Source: Al Jazeera