Key facts
- Reza Zarrab, a cooperating witness in the U.S. probe of Halkbank, will be sentenced on July 14.
- Zarrab pleaded guilty in October 2017 to conspiring to evade U.S. sanctions.
- He testified against former Halkbank official Mehmet Hakan Atilla, who was convicted of helping Iran evade sanctions.
- Halkbank was separately charged in 2019 and pleaded not guilty.
- Prosecutors have agreed to drop charges against Halkbank under certain conditions.
Reza Zarrab, a crucial cooperating witness in the U.S. government's investigation into Turkish lender Halkbank's alleged involvement in helping Iran evade sanctions, is set to be sentenced on July 14. This sentencing comes nearly nine years after Zarrab himself pleaded guilty to conspiring to evade U.S. sanctions.
Zarrab, a prominent Turkish-Iranian gold trader, had testified in 2017 against former Halkbank official Mehmet Hakan Atilla, who was subsequently convicted for his role in assisting Iran with sanctions evasion. The U.S. separately charged Halkbank in 2019, though the bank pleaded not guilty.
In March, prosecutors indicated they had reached an agreement with Halkbank to drop the charges. This deal reportedly includes conditions such as the bank barring transactions that benefit Iran. The news of this potential agreement led to a surge in Halkbank's shares on the Istanbul stock exchange.
U.S. District Judge Richard Berman has paused the Halkbank case for 90 days, allowing the bank time to demonstrate compliance with the agreed-upon terms. A hearing is scheduled for June 17, during which the judge will consider the prosecutors' request to dismiss the case against the bank.