Turkey’s state-owned Halkbank has asked the US Supreme Court to review a lower court ruling that allows it to be prosecuted for allegedly helping Iran evade US sanctions, Reuters reported on Tuesday, citing the bank’s US-based lawyer.
The Supreme Court had given Halkbank until May 5 to petition the October 22, 2024, decision by the 2nd US Circuit Court of Appeals in Manhattan, which allowed the prosecution to proceed. Lawyer Robert Cary informed the appeals court in a letter that the petition had been filed, though it was not yet available on the Supreme Court’s website, Reuters said.
Halkbank has pleaded not guilty to fraud, money laundering and conspiracy charges. US prosecutors say the bank used money servicers and front companies in Iran, Turkey and the United Arab Emirates to help Iran move an estimated $20 billion in restricted funds. The funds allegedly came from Iranian oil revenue that was converted into gold and cash and documented as fake food shipments to justify the transactions.
The 2019 indictment has strained ties between Ankara and Washington. Turkish President Recep Tayyip Erdoğan has repeatedly criticized the case as “unlawful” and “ugly.” Disagreements over Syria, Turkey’s cooperation with Russia and other issues have contributed to worsening relations over the past decade.
However, Erdoğan and US President Donald Trump said on Monday that they had a productive phone call and had invited each other for reciprocal visits.
This is the second time Halkbank has taken its case to the Supreme Court. In 2023 the justices ruled that the federal Foreign Sovereign Immunities Act of 1976 does not shield foreign entities from criminal prosecution. But the court also instructed the appeals court to examine whether common law immunity applied, leading to the October ruling that allowed the case to move forward.