Turkish Bank 'Halkbank' Loses Appeal in US Court

A US appeals court on Friday, December 7, 2023, rejected the Turkish bank 'Halkbank's' request to dismiss charges of 'bypassing US sanctions in favor of the Islamic Republic.' The three-judge panel of the Second Circuit Court of Appeals had previously dismissed Halkbank's argument for 'sovereign immunity due to state ownership' in October. In its order on Friday, the court also denied Halkbank's request for the case to be reviewed by all active judges of the court. US prosecutors accused 'Halkbank' in 2019 of using financial services and shell companies in Iran, Turkey, and the United Arab Emirates to circumvent sanctions against the Islamic Republic. According to them, Halkbank assisted the Islamic Republic of Iran in secretly transferring $20 billion of restricted funds, converting its oil revenues into gold and then cash, and in the process registering fake documents for the export of food shipments to justify the transfer of its oil revenues. Halkbank officials denied the allegations of bank fraud, money laundering, and conspiracy at that time and made several appeals. This case has caused tensions in US-Turkey relations, with Turkish President Recep Tayyip Erdoğan calling the allegations from the US 'illegal and ugly.' The US Supreme Court rejected Halkbank's request for 'sovereign immunity.' The US appeals court stated that Halkbank could be prosecuted for violating Iran sanctions. The fate of the negotiations to revive the JCPOA and gas shortages: reflections of the crisis in Iran in global media. The US is reviewing the request of the Turkish bank accused of violating Iran sanctions. A banking official who was imprisoned in the US for violating Iran sanctions has taken a position in the Istanbul Stock Exchange from the Turkish government.