U.S. Court Weighs Deal to Dismiss Halkbank Charges
A federal judge in New York is reviewing an agreement between U.S. prosecutors and Turkey’s state-owned lender Halkbank that could bring an end to a years-long criminal case involving alleged sanctions violations connected to Iran.
The case, first filed in 2019, accused the bank of helping move billions of dollars through transactions that allegedly bypassed U.S. sanctions. Halkbank has consistently denied wrongdoing and previously entered a not-guilty plea.
Compliance Review Clears Path for Dismissal
Earlier this year, U.S. authorities and Halkbank reached an agreement that temporarily paused the case and required the bank to undergo an independent review of its sanctions and anti-money laundering controls.
According to prosecutors, the review found no compliance failures. The bank also agreed to maintain safeguards designed to prevent transactions benefiting Iran. Because the conditions were fulfilled, the Justice Department asked the court to dismiss the charges permanently.
The proposed resolution does not include financial penalties, and Halkbank is not required to admit any criminal wrongdoing.
Case Influenced U.S.-Turkey Relations
The legal battle has been a source of tension between Washington and Ankara for years. Turkish officials repeatedly criticized the prosecution and argued that the charges were unfair.
Recent improvements in diplomatic relations between the two countries have helped create momentum toward resolving the dispute. U.S. prosecutors have argued that ending the case serves broader national security and foreign policy interests while maintaining pressure on Iran.
Although judges generally have limited authority to reject such agreements, the court hearing will determine whether the settlement is finalized.
What Happens Next?
Judge Richard Berman is expected to consider the government’s request and decide whether the criminal prosecution should be officially closed. If approved, the decision would conclude one of the most closely watched sanctions-related cases involving a foreign state-owned bank.
