Halkbank Granted Reprieve in US Prosecution Over Iran Sanctions

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A US court of appeals in Manhattan has granted Halkbank a temporary stay in the lawsuit filed for evading the US economic sanctions against Iran.

As reported by the state-run Anadolu Agency (AA), the temporary pause was granted to Turkey's state-owned Halkbank on Friday (January 31) to allow for its requests to be heard by a three-judge panel. The court has indicated that it will take up Halkbank's requests on an expedited basis.

The three-judge court of appeals will now weigh in on the matter.

A court denied in early December Halkbank's request to make a "special and limited appearance" in order to have the case dropped without having to formally participate in the proceedings.

District Court Judge Richard Berman said that Halkbank and its counsel failed to appear at the hearing on October 22 and, in so doing, it "willfully and knowingly disobeyed the Court's order."

A second hearing held on November 5 saw Halkbank's counsel, listed as King & Spalding, appear but with the sole intent of seeking permission for the "special and limited appearance."

What happened?

On October 15, US prosecutors filed a total of six charges against the state-owned Halkbank, including "money laundering" and "fraud."

In a written statement released about the judicial process, it was indicated that Halkbank was the part of a system to evade the US sanctions against Iran over its nuclear program. This system was in effect for years and reached billions of dollars in total, the statement read further.

While the prosecutors alleged that Iran could reach otherwise restricted oil revenues of 20 billion dollars thanks to Halkbank, the attorneys of the bank rejected the charges and refused to respond to the allegations in court

As Halkbank refuses to appear in court, the US prosecutors have been accusing the bank of contempt of court.

Judge rejected the request of Halkbank

In December 2019, US District Judge Richard Berman rejected a request by Turkey's state-owned Halkbank to pause the case for evading Iran sanctions.

"Simply stated, the court rejects Halkbank's efforts to avoid and delay appropriate district court proceedings," he wrote in a five-page decision.

"Halkbank has two reasonable choices: it can either appear in a U.S. court to raise any legitimate defense or it can choose not to appear and face any attendant risks", it was further indicated in the decision.

Berman was also the judge of the case where Halkbank former Deputy General Manager Richard Berman was convicted.

The next hearing of Halkbank will be held on February 25. (TP/SD)