The US Department of Justice has moved to dismiss criminal charges against Türkiye Halk Bankası following a deferred prosecution agreement. The Turkish state-owned lender faces no financial penalties despite accusations of facilitating twenty billion dollars in restricted Iranian funds through front companies.
Filed in the Southern District of New York, the agreement pauses proceedings for ninety days. Charges will be permanently dropped if Halkbank maintains strict compliance during this period. The bank is not required to admit wrongdoing.
Halkbank must appoint EY as an independent compliance monitor to oversee anti-money laundering protocols and US sanctions adherence. The institution is explicitly prohibited from conducting future Iran-related transactions and must submit regular compliance reports.
Market reaction was immediate, with Halkbank shares surging ten percent following the announcement. Investors view the fine-free agreement as a optimal resolution that eliminates the existential risk associated with a criminal trial.
This outcome concludes a legal battle dating to a 2019 indictment for conspiracy and money laundering. The Supreme Court previously rejected Halkbank’s sovereign immunity defense in 2023, paving the way for prosecution before this settlement.
Democratic lawmakers have questioned the deal's timing given current diplomatic relations between Washington and Ankara. The DOJ retains authority to revive charges should the bank fail to satisfy oversight requirements during the monitoring period.