US Department of Justice and Halkbank reach settlement in Iran sanctions case: Appeal had been rejected
Judge Richard Berman, who is presiding over the Iran sanctions case against Halkbank in the US, announced that the parties have reached a settlement.
İHA
Manhattan District Judge Berman said he would request information from lawyers for both sides regarding a "deferred prosecution agreement" at a hearing to be held on Wednesday.
Following the news of the settlement, Halkbank's shares on Borsa Istanbul gained 10 percent in value.
US prosecutors charged Halkbank in 2019 with helping Iran evade US sanctions against the country. It was alleged that Iran's energy revenues were held in Halkbank accounts in Turkey and transferred to Iran through gold trading and money transfers. The bank was accused of using money transfer brokerage services and shell companies in Iran, Turkey, and the United Arab Emirates to evade sanctions, but Halkbank denied these charges. President Recep Tayyip Erdoğan had described the case, which was one of the main sources of tension between Turkey and the US, as unlawful and ugly.
The settlement between the US Department of Justice and Halkbank came after initiatives to find a legal basis for a settlement within the framework of agreements between Turkey and the US.
Appeal had been rejected
The charges against Halkbank were brought to the agenda in 2019 during US President Donald Trump's first term, and the New York District Attorney's Office filed an indictment against Halkbank in October 2019 to initiate the case. Halkbank lawyers argued that the bank could not be tried in the US because it is a state bank, but this defense was rejected by the lower court. In the criminal case, Halkbank requested that the case be dismissed on the grounds of sovereign immunity, but the application was rejected by the Court of Appeals in 2024. Following this decision, Halkbank's appeal to the US Supreme Court was also rejected last October.
President Erdoğan had discussed the case with Trump
President Erdoğan met with US President Trump at the White House last September and said in a statement the following month that he hoped the meeting would resolve many issues between the two countries. Erdoğan stated that Trump had said during the meeting at the White House and in a subsequent phone call that the Halkbank issue was over for them.
Deferred prosecution agreement
Deferred prosecution agreements allow defendants to avoid criminal prosecution if they meet certain conditions. The case is usually dismissed by the government after the defendant complies with the conditions for a few months or a few years.