US moves to drop long-running case against Türkiye’s Halkbank

The US Department of Justice has formally asked a federal judge to dismiss the criminal case against Turkish state-owned lender Halkbank, stating it does not intend to continue prosecuting the institution, Reuters reports.

The filing, submitted on June 10, follows a March agreement between Halkbank and the US federal government to end the long-running criminal proceedings. The deal was seen as a step toward resolving a longstanding irritant in relations between NATO allies Türkiye and the United States. The case had triggered a sharp rise in Halkbank shares on the Istanbul Stock Exchange.

During Donald Trump’s first presidential term, Halkbank was accused of helping Iran evade US economic sanctions. Turkish President Recep Tayyip Erdoğan previously described the case as illegal and an “ugly” affair. Relations between the two countries have recently entered what is described as their warmest period in decades following Trump’s return to the presidency last year.

The Justice Department said dropping the prosecution would serve US interests in limiting support for Iran. Under the agreement, Halkbank is barred from conducting transactions benefiting Iran and must appoint a monitor to ensure compliance with sanctions and anti-money laundering rules. Halkbank has previously denied all allegations in the case.

Following a meeting between Erdoğan and Trump last year, the Turkish president expressed hope for a resolution, later stating that Trump told him in a White House meeting and a subsequent phone call that “the Halkbank problem is finished for us.”

By Jeyhun Aghazada