Turkey Investigates Bank Accounts of 'High-Balance Iranians'

The Vice President of the Urmia Chamber of Commerce announced that following the trial of Reza Zarrab and the CEO of Turkey's Halkbank in the U.S., Turkey is reviewing the bank accounts of Iranians with high balances. Ali Dilmaqanian stated in an interview with ILNA news agency on Tuesday, December 4, that several years ago, coinciding with Western sanctions against Iran, the accounts of Iranian economic activists in Turkey with 'high bank balances or transaction volumes were being scrutinized.' According to Mr. Dilmaqanian, Turkey is once again reviewing the bank accounts of Iranian individuals with 'high balances or significant banking transactions' after the trial of Reza Zarrab and the CEO of Halkbank. Reza Zarrab, an Iranian-Turkish businessman, stated for the first time in a New York court on December 1 that 'Ziraat Bank' and 'VakıfBank' of Turkey played a role in circumventing Iran's sanctions. On the same day, the third session of the trial of Mehmet Hakan Atilla, the CEO of Halkbank, was held on charges of violating U.S. sanctions. While Mehmet Hakan Atilla has denied his charges, Reza Zarrab claimed on December 1 that the Halkbank manager had collaborated with him. Mr. Zarrab also accused Turkish President Recep Tayyip Erdoğan of having 'personally authorized the circumvention of U.S. sanctions against Iran.' In response, Erdoğan stated on Saturday, December 2, that American courts cannot try Turkey in relation to the trial of a senior banking official in Turkey for circumventing U.S. sanctions against Iran. According to a report by the Associated Press citing Zarrab's indictment, he met with several government 'banking and financial' officials in 2012, including the then Governor of the Central Bank of Iran and the financial director of the National Iranian Oil Company. The year 2012 coincided with the final period of Mahmoud Ahmadinejad's presidency, and the then Central Bank Governor was Mahmoud Bahmani, who served from 2009 to 2013. However, Mahmoud Bahmani stated that he had 'never met' Mr. Zarrab and that these statements are 'rumors stemming from a series of propaganda against Iran and such a thing never existed.' In total, nine individuals are accused in the case related to Mr. Zarrab, but only Reza Zarrab and Mehmet Hakan Atilla, the CEO of Halkbank, are currently detained in the United States. Reza Zarrab also confessed to having bribed former Turkish Economy Minister Zafer Çağlayan with $50 million to facilitate 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. In this context, Erdoğan stated that American courts cannot try Turkey, and the Istanbul Prosecutor's Office issued an order for the 'seizure of Reza Zarrab's assets.' The Turkish Prime Minister expressed hope that Reza Zarrab would return from the wrong path. Zarrab claimed that Erdoğan had authorized the circumvention of Iran's sanctions, while Erdoğan insisted that Turkey did not circumvent U.S. sanctions against Iran. Zarrab admitted to bribing Turkish officials and circumventing Iran's sanctions, and his cooperation with the U.S. prosecutor's office has been confirmed. Zarrab will not be 'tried' in the U.S. court. Turkey has asked the U.S. to end the case against Zarrab and the Turkish banker.