Supreme Court Denies Halkbank Immunity Bid in U.S. Sanctions Case

The U.S. Supreme Court has declined to hear Turkey's Halkbank appeal, allowing charges related to helping Iran evade U.S. economic sanctions to proceed. The case has soured U.S.-Turkey relations, as prosecutors allege the bank conducted illicit transfers worth $20 billion, invoking immunity under U.S. and common law.

The Supreme Court has opted not to hear an appeal by Turkey's state-owned Halkbank aiming to dismiss charges of fraud, money laundering, and conspiracy. These charges arise from allegations that Halkbank assisted Iran in circumventing U.S. economic sanctions.

This decision supports a lower court ruling, permitting the criminal case initiated by U.S. prosecutors in 2019 to proceed. Accusations center on Halkbank using agencies in Iran, Turkey, and the UAE to obscure $20 billion in transactions that benefited Iran.

Halkbank's argument for immunity under the Foreign Sovereign Immunities Act was previously rejected. The Supreme Court affirmed that common law does not shield state-owned enterprises from such legal claims, solidifying the position amid strained U.S.-Turkey relations.

(With inputs from agencies.)