US DOJ Moves to Dismiss Halkbank Case Over Iran Sanctions Violations

• •US DOJ seeks to dismiss the Halkbank case over alleged Iran sanctions violations.
• •Halkbank agreed to a deferred prosecution agreement with compliance conditions.
• •The case's dismissal aims to improve US-Turkey relations amid geopolitical tensions.

The US Department of Justice has formally requested to drop the criminal case against Turkey's Halkbank, which was accused of facilitating Iran's evasion of US sanctions. This decision follows a deferred prosecution agreement made in March, where Halkbank agreed to comply with specific conditions, including a review of its compliance policies by Ernst & Young. The case, which has been a point of contention between the US and Turkey, saw Halkbank accused of transferring $20 billion in restricted funds and other illicit activities. The dismissal aims to improve US-Turkey relations, which have warmed since Donald Trump's return to the presidency. The US Justice Department stated that dropping the case aligns with its interests in curbing support for Iran. No financial penalties were imposed on Halkbank, which maintained its innocence throughout the proceedings. The Manhattan US Attorney's office confirmed that Halkbank met all compliance requirements, prompting the request for dismissal.