Washington, United States. The U.S. government agreed to resolve its long-running criminal prosecution of Turkish state-run lender Halkbank, saying the accord furthers Washington’s interest in curbing support for Iran. The deferred prosecution agreement, filed in Manhattan federal court, requires approval by a judge.
Deferred prosecution agreement and compliance requirements
The agreement forbids Halkbank from entering transactions that benefit Iran and requires the bank to hire a monitor to review its sanctions and anti-money-laundering compliance. According to the agreement, no money will change hands, and the charges will likely be dismissed after the monitor reviews Halkbank’s compliance.
Statements from U.S. prosecutors
U.S. Attorney Jay Clayton in Manhattan said in a letter to U.S. District Judge Richard Berman, who oversees the case, that the agreement furthers the United States’ interests in combatting terrorist financing and financial support for the Government of Iran. Clayton said the agreement serves the public interest by advancing U.S. national security interests in combatting money laundering and terror finance.
Judicial approval and procedural steps
Judge Berman’s approval is required for the agreement. Clayton asked the judge to adjourn a scheduled March 11 status conference.
Background of the case and bilateral context
The agreement would end a years-long saga centered on allegations that Halkbank helped Iran evade American economic sanctions. Turkish President Tayyip Erdogan previously called the case unlawful and “ugly.” The agreement, if approved, would ease one of the main irritants between the United States and Turkey, NATO allies whose ties have improved following Donald Trump’s return to the U.S. presidency last year.
Prior court action and timing of disclosure
The U.S. Supreme Court in October let stand a federal appeals court decision that had allowed the prosecution to proceed. Halkbank’s agreement was disclosed during the ongoing U.S.-Israeli war with Iran.
What impact do you think the agreement could have on U.S.-Turkey relations going forward?
