Turkey’s Halkbank loses newest bid to keep away from US prosecution in sanctions case

(Reuters) – A U.S. appeals courtroom on Friday rejected a request by Turkey’s Halkbank to rethink a ruling holding that the U.S. Division of Justice might prosecute the state-owned financial institution on fees that it helped Iran evade American sanctions.

The New York-based 2nd U.S. Circuit Courtroom of Appeals declined to have the total courtroom rethink a three-judge panel’s October rejection of Halkbank’s argument that it deserved immunity from prosecution.

The 2nd Circuit panel discovered no foundation below centuries-old frequent legislation rules for international state-owned firms to be completely immune from U.S. prosecution associated to business, nongovernmental actions.

Halkbank, in courtroom papers asking the courtroom to rethink, mentioned the panel’s ruling “conflicts with the longstanding precept of worldwide legislation that one sovereign can not criminally cost one other.”

Its lead lawyer didn’t reply to a request for remark, however it has beforehand mentioned it might take the case to the U.S. Supreme Courtroom, which has already weighed in as soon as earlier than.

U.S. prosecutors charged Halkbank in 2019 over its alleged use of cash servicers and entrance firms in Iran, Turkey and the United Arab Emirates to evade sanctions.

Prosecutors mentioned Halkbank helped Iran secretly switch $20 billion of restricted funds, transformed oil income into gold and money to profit Iranian pursuits, and documented pretend meals shipments to justify transfers of oil proceeds.

Halkbank pleaded not responsible to financial institution fraud, cash laundering and conspiracy. The case grew to become a thorn in U.S.-Turkey relations, with Turkish President Tayyip Erdogan calling the U.S. fees an “illegal, ugly” step.