Erdogan Says He Discussed Bank Related to Iran Sanctions Violation with Trump

The President of Turkey states that he and his American counterpart, Donald Trump, discussed "Halkbank" over the phone. This bank has been implicated in a case related to violations of Iran sanctions, and its deputy was sentenced to 32 months in prison in the U.S. On November 12, Recep Tayyip Erdogan did not provide many details about this phone conversation, but it occurred at a time when reports of efforts by Washington and Ankara to improve bilateral relations are emerging. Relations between the United States and Turkey faced various tensions this year; however, tensions had existed between the two governments since the failed coup two years ago and even before that. The recent release of an American pastor imprisoned in Turkey has fueled speculation about improving relations. Nevertheless, the two countries still have disagreements on other issues, which have occasionally intensified, and the Halkbank issue is one of them. Mehmet Hakan Atilla, the deputy general manager of this state bank, was sentenced to 32 months in prison in a New York court for violating Iran sanctions. Another individual mentioned in this case is Reza Zarrab, a Turkish-Iranian businessman accused of illegally transferring billions of dollars in currency and gold for the Iranian government. He confessed to his crimes, provided information to U.S. authorities, and appeared as a witness in Atilla's case in court. Atilla's conviction, however, faced strong reactions from Turkish leaders and government institutions. Halkbank has denied the allegations against it. Erdogan stated that he and the U.S. President discussed this bank during a phone call on Thursday, and Trump told him he would "immediately give the necessary orders to his cabinet members." However, the Turkish President did not provide further details. He also added that American officials contacted his country's Ministry of Economy and Treasury the day after the phone conversation. Erdogan mentioned during a press conference on Saturday in Istanbul that "negotiations on this issue are ongoing. The fact that this process has started is very important." Last week, Turkey's Minister of Economy and Treasury told Reuters that he does not expect the state bank to be forced to pay a fine. The U.S. government has not yet reacted to this matter. Erdogan stated that he will meet with Trump during the gathering of world leaders in France to participate in the World War I centenary ceremony.