Key facts
- The U.S. Department of Justice has formally requested the dismissal of criminal charges against Turkey's Halkbank.
The U.S. Department of Justice formally asked a federal judge to dismiss its criminal case against Turkey's Halkbank, stating no intention to prosecute the state-run lender. This follows an agreement to end the long-running sanctions evasion case, easing U.S.-Turkey relations.
The dismissal of the case against Halkbank resolves a significant point of contention between the United States and Turkey, potentially improving diplomatic relations and removing a drag on the Turkish bank's operations and stock performance.
The U.S. Department of Justice has formally requested a federal judge to dismiss criminal charges against Turkey's state-run lender, Halkbank. The move signals the end of a long-running case in which the bank was accused of helping Iran evade U.S. economic sanctions.
The Justice Department stated it has no intention of prosecuting Halkbank, following an agreement reached in March between the bank and the U.S. government. This resolution is expected to ease tensions between the NATO allies, Turkey and the U.S.
Under the terms of the agreement, Halkbank is barred from engaging in transactions that benefit Iran and must adhere to a compliance monitor reviewing its sanctions and anti-money-laundering practices. The bank did not admit any criminal wrongdoing, and no money changed hands as part of the settlement.
U.S. District Judge Richard Berman had paused the case for 90 days to allow Halkbank to demonstrate compliance. Following a review by Ernst & Young, which identified no areas of noncompliance, prosecutors submitted their motion to dismiss the case.
The case had a complex history, with the U.S. Supreme Court previously allowing the prosecution to proceed despite Halkbank's arguments for sovereign immunity. Prosecutors had accused the bank of facilitating secret transfers of funds and converting oil revenue into gold and cash for Iranian interests.
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