He Department of Justice asked a judge to allow him to dismiss a long-running US criminal case against the Turkish state bank Turkiye Halk Bankasi AS for alleged violations of sanctions against Iran.
Prosecutors informed the federal judge Richard Berman that Halkbank had met all conditions to dismiss the case under a deferred prosecution agreement signed with the bank in March.
The government stated that Halkbank had passed a review of its policies and procedures for compliance with US sanctions and anti-money laundering, carried out by Ernst Young Kurumsal Finansman Danismanlik ASthe Turkish subsidiary of Ernst & Young LLP.
“Following its comprehensive review of the bank’s anti-money laundering compliance and sanctions program, EY did not identify any areas of non-compliance,” both sides told the judge in a joint letter made public late Wednesday.
Halkbank and the Southern District Prosecutor’s Office of New York submitted a joint letter requesting that the case be dismissed, the Turkish bank said Thursday.
“Following the District Court’s swift dismissal of the criminal case, upon review of the joint letter, the criminal case of Halkbankwhich lasted for 9 years, will have completely concluded,” was indicated in a statement to the stock exchange.
The certification occurs after an agreement between the United States and Halkbankfiled in March in Manhattan federal court. He Manhattan federal prosecutor, Jay Claytonindicated in a separate letter that, with the judge’s authorization, he ordered the formal dismissal of the charges. American judges have very limited authority to overturn the court’s decision. Department of Justice not to proceed with a prosecution.
Halkbank declared in March that he did not admit to having committed any crime and that he would not pay judicial or administrative fines as a result of the agreement.
The case of Halkbank 2019 has been a point of friction between the United States and Türkiye. The Turkish president, Recep Tayyip Erdoganhe mentioned it with the American president, donald trumpin a meeting at the White House last September and later stated that Türkiye hoped the matter would be resolved.
In a letter addressed to BermanThe United States cited Turkey’s help in negotiating a ceasefire in Gaza and the release of hostages.
Halkbank He was charged with fraud, money laundering and other crimes related to an alleged scheme to help Iran evade US sanctions. He was charged with helping Iran transfer $20 billion in restricted funds.
The case has dragged on for years, including appeals over whether the bank, being a majority state entity, enjoys immunity from prosecution. The United States Supreme Court rejected the appeal of Halkbank in October.
Mehmet Hakan Atillaformer official of Halkbankwas charged and convicted separately in 2018, following a jury trial. Reza Zarraba Turkish-Iranian businessman, pleaded guilty to the charges and testified against Atilla.
The case is United States v. Turkiye Halk Bankasi AS15-cr-867, United States District Court, Southern District of New York.
