Halkbank and US reach deferred prosecution agreement
Halkbank and the U.S. Justice Department reached a deferred prosecution deal over sanctions evasion charges. The agreement ends a long-running criminal case.
Türkiye Halk Bankasi A.S. and the United States Department of Justice have reached a deferred prosecution agreement, according to a court filing released on Monday. The agreement addresses a long-standing criminal case involving allegations of fraud, money laundering, and conspiracy to assist Iran in evading economic sanctions. The presiding judge announced the deal without providing specific details regarding the terms of the settlement.
The case has been a major diplomatic friction point between the U.S. and Turkey. Prosecutors alleged that the bank used a network of front companies and money services in Iran, Turkey, and the United Arab Emirates to facilitate the secret transfer of $20 billion in restricted funds. These operations allegedly included converting oil revenue into gold and cash and creating fraudulent documentation for food shipments to mask the movement of oil proceeds.
Turkish President Tayyip Erdogan has frequently condemned the prosecution, describing the legal actions as unlawful. Following discussions with U.S. President Donald Trump, Erdogan expressed confidence that the matter would be resolved.
\"The Halkbank problem is finished for us.\"
The legal journey of the case has been complex, involving multiple appeals and reviews by the U.S. Supreme Court. While the bank argued for immunity under the Foreign Sovereign Immunities Act, appellate courts ruled that the bank's activities were commercial in nature and thus subject to prosecution. A subsequent review in 2024 further determined that common law did not provide a shield for the state-owned entity against criminal charges.
The investigation also led to the conviction of former bank executive Mehmet Hakan Atilla and a guilty plea from gold trader Reza Zarrab. Atilla returned to Turkey in 2019 after serving a 32-month prison sentence, while Zarrab testified as a key witness for the prosecution. The deferred prosecution agreement effectively pauses the trial process, which had been set to proceed after the Supreme Court declined to intervene in October 2025.
