Key facts
- Reza Zarrab, a cooperating witness in the U.S. probe of Halkbank's alleged sanctions evasion, was sentenced to time served.
- Zarrab pleaded guilty in 2017 to conspiring to evade U.S. sanctions.
- He testified against former Halkbank official Mehmet Hakan Atilla, who was convicted.
- Halkbank was charged in 2019 with transferring $20 billion of restricted Iranian funds.
- The bank reached a deal with the Justice Department to end the case.
- Charges against Halkbank were dismissed last month after the deal was finalized.
Reza Zarrab, a central figure in the U.S. government's criminal investigation into Turkish state-run lender Halkbank's alleged scheme to help Iran evade sanctions, has avoided prison time. U.S. District Judge Richard Berman sentenced Zarrab to time served at a hearing in Manhattan federal court, acknowledging his cooperation with prosecutors.
Zarrab, a 42-year-old Turkish-Iranian gold trader, had pleaded guilty in October 2017 to charges of conspiring to evade U.S. sanctions. He later testified against former Halkbank official Mehmet Hakan Atilla during Atilla's 2017 trial in New York, where Atilla was convicted of aiding Iran in circumventing U.S. sanctions.
The U.S. separately charged Halkbank in 2019 with allegedly transferring $20 billion in restricted Iranian funds, converting oil revenue into gold and cash, and documenting fake food shipments to legitimize oil proceeds. The bank had pleaded not guilty.
Last month, Judge Berman formally dismissed the charges against Halkbank. This followed a March agreement where the Justice Department stated the bank would hire a monitor to review its sanctions and anti-money laundering compliance. The resolution of the case has eased a significant point of contention between NATO allies Turkey and the United States, with Turkish President Recep Tayyip Erdogan having previously criticized the case as unlawful. The Justice Department indicated the agreement was influenced by Turkey's role in securing a ceasefire between Israel and Hamas.