US and Turkish Halkbank reach deferred prosecution agreement

The United States Department of Justice has announced a deferred prosecution agreement with the Turkish state-owned bank Halkbank to resolve long-standing criminal charges. The case centered on allegations that the bank assisted Iran in bypassing American economic sanctions. Filed on Monday in a Manhattan federal court, the agreement requires the bank to hire an independent monitor to oversee compliance with anti-money laundering regulations and sanctions. The deal, which must still be approved by Judge Richard Berman, does not require Halkbank to admit criminal guilt or pay fines. Halkbank stated that the resolution will improve its financial standing and access to international markets, leading to a 10% increase in its stock price. U.S. Attorney Jay Clayton noted that the agreement serves U.S. interests in combating terrorism financing and economic support for Iran. Turkish President Recep Tayyip Erdogan had previously labeled the criminal proceedings against the bank as illegal. This settlement is viewed by analysts as a significant step in improving diplomatic relations between the United States and Turkey under the administration of President Donald Trump.