US Supreme Court rejects challenge by Turkey’s Halkbank to prosecution

The Supreme Court declined on Monday to hear another bid by Turkey’s state-owned lender Halkbank to avoid fraud, money laundering and conspiracy charges in the United States for allegedly helping Iran evade American economic sanctions.

The justices turned away Halkbank’s appeal of a lower court’s ruling that let the criminal case brought by the US government proceed, allowing that decision to stand. Halkbank shares closed 10 per cent lower in Istanbul after the news.

The Supreme Court in 2023 threw out a previous decision by the same lower court that had permitted the case to move forward but at that time rejected a key defence mounted by the bank.

Brought by US federal prosecutors in 2019, the case has been a thorn in US-Turkey relations, with Turkish President Recep Tayyip Erdogan calling it an “unlawful, ugly” step. Halkbank has pleaded not guilty.

The Supreme Court decision not to hear Halkbank’s appeal clears the way for a possible trial unless both sides settle.

In a statement, Halkbank said it would continue asserting all its legal rights.

“Initiatives to find a legal ground of conciliation within the framework of the understandings between the United States and Turkey are also ongoing in a positive direction,” the bank added.

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