The U.S. Department of Justice has formally requested a federal judge to dismiss its long-running criminal case against Turkey’s state-owned lender, Halkbank, signaling the end of a major legal dispute that had strained relations between the United States and Turkey. The move follows a settlement reached in March, under which the U.S. government agreed not to pursue further prosecution of the bank. The announcement boosted investor confidence, with Halkbank shares surging on the Istanbul stock exchange.
Halkbank had been charged during President Donald Trump’s first term with helping Iran evade U.S. economic sanctions. The bank consistently denied wrongdoing and pleaded not guilty. Under the settlement, Halkbank is prohibited from engaging in transactions that benefit Iran and must undergo independent monitoring of its sanctions and anti-money-laundering compliance. The agreement does not involve any financial penalties, and the bank has not admitted criminal liability.
After a 90-day compliance review conducted by Ernst & Young, U.S. prosecutors informed the court that no violations of the settlement terms had been identified. Prosecutors have now asked Judge Richard Berman to approve the dismissal of the case. The development marks a significant step in improving ties between NATO allies Turkey and the United States, ending a legal battle that had reached the U.S. Supreme Court and remained a sensitive issue in bilateral relations for several years.
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