US judge dismisses Iran sanctions case against Halkbank

NEW YORK — A U.S. federal judge dismissed the long-running prosecution of Turkey's Halkbank over alleged violations of Iran sanctions, granting a request from U.S. Attorney Jay Clayton to drop the case after the bank completed required regulatory and supervisory conditions. Judge Richard Berman issued the ruling, ending a case that had been described by the Justice Department as one of the most significant sanctions-related prosecutions. U.S. prosecutors had charged the bank in 2019 with facilitating the transfer of billions of dollars in Iranian oil and natural gas revenues through a multiyear scheme. The Justice Department had filed six counts against Halkbank, including fraud, money laundering and sanctions violations. In March, the department announced a deferred prosecution agreement under which the case would be dropped if the bank passed an independent review of its compliance programs. Halkbank's lawyers filed a 12-page joint petition with Judge Berman on June 10, stating that the bank had fulfilled its regulatory and supervisory obligations. Under the agreement, the bank retained a Turkish accounting firm affiliated with Ernst & Young to conduct the review. The examination found no violations in Halkbank's transactions involving Iran or Iranian individuals and entities. No further details on any remaining conditions were immediately available.