The US Supreme Court on Monday declined to hear a new appeal by Turkey’s state-owned Halkbank, clearing the way for fraud, money laundering and conspiracy charges to proceed in a Manhattan court, Reuters reported.
The bank is accused of helping Iran evade US sanctions by moving billions of dollars through front companies and fake trade deals. US prosecutors say Halkbank secretly transferred about $20 billion in restricted funds, including oil revenue converted into gold and cash, and used fabricated food shipments to disguise transfers. The bank has pleaded not guilty.
The long-running case, filed in 2019, has strained ties between Washington and Ankara. Turkish President Recep Tayyip Erdoğan has repeatedly denounced the prosecution, calling it politically motivated and unlawful.
Halkbank had argued that as a state-owned entity, it should be immune from prosecution in US courts. The Supreme Court previously ruled in 2023 that the bank was not protected under the Foreign Sovereign Immunities Act and sent the case back to a lower court to consider whether common law offered immunity. The 2nd US Circuit Court of Appeals later rejected that claim, saying the charges related to commercial rather than governmental activities.
The Justice Department urged the justices not to take up Halkbank’s latest appeal, arguing that foreign state-owned companies cannot invoke common law immunity to avoid criminal cases. The Supreme Court’s refusal means the trial can now move forward.