Judge Questions US-Turkey Halkbank Deal Over Terrorism Victims' Concerns

• •A federal judge questioned a deal allowing Halkbank to avoid penalties for aiding Iran.
• •The deferred prosecution agreement has raised concerns from US terrorism victims.
• •Halkbank allegedly helped transfer $20 billion in restricted funds to Iran.

A federal judge has raised concerns regarding a deferred prosecution agreement between the Trump administration and Turkiye Halk Bankasi AS, which allegedly allowed the bank to evade criminal liability for assisting Iran in circumventing US sanctions. During a hearing on March 11, 2026, US District Judge Richard Berman questioned the Justice Department's rationale for the agreement, especially in light of objections from a group representing US terrorism victims. This group claims that Halkbank facilitated the transfer of $20 billion in restricted funds to Iran, and under the current deal, it would not face any financial penalties. The situation highlights significant legal and ethical implications regarding the enforcement of sanctions and the accountability of financial institutions. The judge's inquiry reflects ongoing tensions between US legal standards and international banking practices.