Turkey’s state-owned Halkbank has taken a big step in its long legal fight in the United States. The bank has asked the U.S. Supreme Court to review a ruling that says it can be prosecuted for allegedly helping Iran avoid American sanctions. This move comes after a decision by a lower court last year that allowed U.S. prosecutors to continue with their case against the bank.
The 2nd U.S. Circuit Court of Appeals in New York had ruled on October 22, 2024, that the case could move forward. Halkbank’s legal team quickly responded, filing a petition with the Supreme Court before their deadline. This marks the second time that the bank’s case has reached the country’s highest court.
While the full details of Halkbank’s latest petition are not yet public, the case continues to stir tensions between Turkey and the U.S. It first appeared in court in 2019 and has since become a serious point of disagreement between the two nations.
Serious Charges and Billions at Stake
Halkbank stands accused of helping Iran move around $20 billion in restricted funds. According to U.S. prosecutors, the bank used secret methods and fake paperwork to make it look like the money was being used for legal trade. They claim that oil revenue from Iran was disguised as payments for food and other goods that were never actually shipped.
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The charges against Halkbank are serious. The bank is facing accusations of fraud, money laundering, and conspiracy. Prosecutors believe that Halkbank worked with money servicers and fake companies in countries like Iran, Turkey, and the United Arab Emirates. These actions, they say, helped Iran avoid U.S. sanctions, which are rules designed to block the country from accessing certain amounts of money and goods.
Halkbank has pleaded not guilty to all charges. They argue that as a state-owned bank, they should be protected from U.S. criminal cases. However, the U.S. Supreme Court previously ruled in 2023 that the protections under the Foreign Sovereign Immunities Act, which usually shield foreign governments and their agencies from civil lawsuits, do not apply to criminal cases.
Tensions Between Nations Over the Case
The Halkbank case has not only become a legal battle but also a diplomatic headache. The issue has worsened relations between Turkey and the U.S., two countries that have had an up-and-down relationship over the past decade. There have been disagreements over several matters, including conflicts in Syria and Turkey’s closer ties with Russia.
When the charges first came out in 2019, Turkish leaders called the case unfair and damaging. They described it as an ugly and unlawful step by the United States against a key Turkish institution. Despite this, American prosecutors have pushed forward, saying that the evidence against the bank is strong.
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Interestingly, on the same day that Halkbank filed its appeal, leaders from both countries said they had a productive phone call and even invited each other for visits. This shows that while the legal fight continues, diplomatic talks between the nations are still active.
For now, all eyes are on the U.S. Supreme Court to see whether they will take up Halkbank’s appeal again and what it will mean for the future of this long-running case.
