Appeals Court Rejects Halkbank's Request for Immunity

A U.S. Appeals Court has denied Halkbank's request for immunity in a case alleging the bank facilitated Iran's evasion of American sanctions. The 2nd Circuit Court determined that Halkbank, a foreign state-owned enterprise, can be prosecuted in the U.S. for engaging in criminal conduct related to its commercial activities. Halkbank is facing criminal charges in this U.S. lawsuit.

Prosecutors claim that in 2019, Halkbank used money service providers and shell companies in Turkey and the United Arab Emirates to help Iran circumvent sanctions. They allege that the bank assisted in the covert transfer of $20 billion in restricted Iranian funds and in converting oil revenues. According to prosecutors, Halkbank converted oil revenues into gold and cash, benefiting Iran, and justified these transfers through fictitious food shipments. Halkbank, however, denies all charges and is determined to defend itself against accusations of bank fraud, money laundering, and conspiracy.