Turkey's Halkbank Urges US Judge to Dismiss Iran Sanctions Case

Turkey's Halkbank Urges US Judge to Dismiss Iran Sanctions Case

TEHRAN (Tasnim) – Halkbank, Turkey’s second-largest state bank, urged a judge to dismiss a United States indictment accusing it of helping Iran evade American sanctions.

At a hearing in Manhattan federal court, a lawyer for Halkbank said its status as a Turkish "instrumentality" shielded it from prosecution because of sovereign immunity.

The US Department of Justice charged Halkbank last October with using money servicers and front companies in Iran, Turkey and the United Arab Emirates to evade sanctions, enable revenue from oil and gas sales to be spent on gold, and facilitate sham food and medicine purchases.

Halkbank has pleaded not guilty to bank fraud, money laundering and conspiracy charges, including over its alleged transfer of $20bn of otherwise restricted Iranian funds, Reuters reported.

Simon Latcovich, a lawyer for Halkbank, told US District Judge Richard Berman its alleged conduct had only "incidental" US ties, and did not qualify for an exception to sovereign immunity governing the commercial activity.

"We're talking about processing Iranian oil and natural gas transactions," Latcovich said. "By definition, this is the type of activity that cannot be exercised by private citizens, making it sovereign, and not commercial."

The hearing followed a Thursday evening refusal by the federal appeals court in Manhattan to let Halkbank delay the case while it appeals Berman's refusal to recuse himself.

The judge did not rule on Halkbank's dismissal request. A trial remains scheduled for March 1, 2021.

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