Reza Zarrab: Erdogan Personally Issued Permit to Evade Iran Sanctions

Reza Zarrab, an Iranian-Turkish businessman, accused Turkish President Recep Tayyip Erdogan on Thursday in a New York court of having "personally issued a permit to evade U.S. sanctions against Iran." Last month, Zarrab accepted seven charges against him, including conspiracy, violation of U.S. sanctions, bank fraud, money laundering, and bribery of a prison guard to obtain alcohol and use a mobile phone in prison. He stated on Wednesday that he is cooperating with U.S. authorities on the charges. According to Reuters, Zarrab admitted in court on Thursday, December 9, that Erdogan, then Prime Minister of Turkey, had authorized the evasion of Iran's sanctions. The U.S. Attorney's Office has accused Zarrab, born in Iran, of helping the Iranian government and institutions transfer hundreds of millions of dollars in assets to evade sanctions between 2010 and 2015. For the first time, Zarrab mentioned that "Ziraat Bank" and "Vakif Bank" (Vakifbank) of Turkey played a role in circumventing Iran's sanctions. On the same day, the third court session for Mehmet Hakan Atilla, the director of Halkbank, was held on charges of violating U.S. sanctions. While Atilla has not accepted his charges, Zarrab stated on Wednesday that the Halkbank director had been cooperating with him. In the case of violating Iran's sanctions, nine individuals have been charged by U.S. prosecutors. Zarrab and Atilla are among those detained in the U.S. Prosecutors claim that Zarrab and Atilla transferred Iran's oil and gas revenues through money laundering, which violates U.S. sanctions. According to prosecutors, Zarrab and Atilla bribed high-ranking Turkish officials in this "conspiracy." Zarrab admitted on Wednesday that he had paid $50 million in bribes to Mehmet Zafer Caglayan, a former Turkish economy minister, for the transfer of Iranian gold. He stated that Iran's oil and gas money was converted into gold through Halkbank and then sent to Dubai for sale and conversion into cash. Zarrab also confessed on Wednesday that he had bribed the then-general director of Halkbank, Suleyman Aslan. Both Caglayan and Aslan are also defendants in this case. The Iranian-Turkish businessman claimed he had also attempted to circumvent sanctions through China, but the Chinese government ultimately prevented this. Zarrab and his wife, Turkish singer Ebru Gündeş, along with their daughter, traveled to the U.S. in 2016 to visit "World Disney," which led to Zarrab's arrest. Zarrab's trial in Turkey is being closely monitored. Erdogan has repeatedly called for Zarrab's extradition. The Turkish Deputy Prime Minister recently stated that Zarrab is being "held hostage" in the U.S. to testify against the Turkish government. U.S. prosecutors stated last month that "the Turkish government and officials of its banks were an inseparable element of the process of evading sanctions." According to the prosecution, recorded phone conversations and other documents indicate that Zarrab was acting in the interests of Recep Tayyip Erdogan. In this context, Zarrab admitted to bribing Turkish officials and evading Iran's sanctions. Erdogan: Turkey has not evaded U.S. sanctions against Iran. Zarrab's cooperation with U.S. prosecutors has been confirmed.