US, Türkiye's Halkbank Reach Deferred Prosecution Agreement in Iran Sanctions Case
By Bosphorus News Economy Desk
Halkbank is a Turkish state-owned bank charged by U.S. prosecutors in 2019 with helping Iran evade American sanctions through a network of front companies. The origins of the case trace back to a 2013 corruption investigation in Türkiye, in which Halkbank's then general manager and Iranian-Turkish gold trader Reza Zarrab were among those detained on charges of money laundering and smuggling gold to Iran. Zarrab later became a key witness for U.S. prosecutors. The case has wound through U.S. courts for years, including a 2023 Supreme Court ruling that rejected the bank's claim to immunity from prosecution as a state institution.
The U.S. Justice Department and Türkiye's state-run Halkbank have reached a deferred prosecution agreement in the long-running criminal case linked to alleged violations of sanctions on Iran, according to a U.S. court filing.
Manhattan based U.S. District Judge Richard Berman said in a written order that the agreement would be discussed at a previously scheduled court hearing later this week. Details of the arrangement were not immediately disclosed.
U.S. prosecutors charged Halkbank in 2019 with fraud, money laundering and conspiracy for allegedly helping Iran evade American economic sanctions through a network of front companies and transactions designed to disguise the origin of funds.
The case is tied to a broader investigation that also involved Turkish-Iranian gold trader Reza Zarrab and former Halkbank executive Mehmet Hakan Atilla, who was convicted in the United States in 2018.
Halkbank has pleaded not guilty to the charges. The case has moved through several rounds of appeals in U.S. courts, including a bid by the bank to claim immunity from prosecution as a state-owned institution.
A deferred prosecution agreement is a formal arrangement in which the government agrees to drop criminal charges if the defendant meets a set of conditions over a defined period. These typically include paying a fine, cooperating with investigators, and implementing internal compliance measures. If the defendant fulfills the terms, the case is closed without a conviction. If it fails to do so, prosecutors can resume the case. For Halkbank, the agreement would allow the bank to avoid a criminal trial and the reputational and financial consequences a conviction would carry.