The US Department of Justice formally requested a federal judge on June 10, 2026, to dismiss the criminal case against Türkiye's Halkbank related to sanctions violations [1, 2]. The case has been ongoing for nine years, stemming from allegations that Halkbank helped Iran evade US economic sanctions through transfers worth approximately USD 20 billion [1, 2].
Halkbank and the US federal government agreed in March 2026 to resolve the long-running criminal proceedings via a Deferred Prosecution Agreement (DPA) that entered into force on March 11, 2026 [1, 2]. The agreement bars Halkbank from conducting transactions that would benefit Iran and requires ongoing monitoring of the bank's sanctions and anti-money-laundering compliance programs [1].
Following the DPA, the US District Judge Richard Berman paused the case for 90 days to allow Halkbank to demonstrate its compliance. Halkbank hired Ernst & Young to conduct a compliance review during this period [1]. The bank submitted a Compliance Report prepared by this expert entity as required under the agreement [2].
After reviewing the report, prosecutors said no areas of non-compliance were identified and moved to dismiss the case [1]. Halkbank did not admit any criminal wrongdoing and pleaded not guilty throughout the proceedings [1].
The criminal case’s origins trace back to the US Supreme Court’s 2023 decision rejecting Halkbank's claim to foreign sovereign immunity, allowing the prosecution to proceed [1].
Halkbank stated, "Following the submission of the Compliance Report, in accordance with the settlement agreement, Halkbank and the U.S. Attorney’s Office for the Southern District of New York submitted the jointly signed petition for the dismissal of the criminal case to the U.S. District Court for the Southern District of New York on June 10, 2026" [2]. The bank added that once the court approves the dismissal, the nine-year case will be fully concluded [2].
