Explainer: Turkey’s Halkbank appeals to US Supreme Court in Iran sanctions case
The case comes at a tense time in US-Turkey relations as the Biden administration weighs whether to sell F-16 jets to Turkey.
The US Supreme Court heard arguments Tuesday on whether Turkey’s Halkbank helped the Islamic Republic of Iran evade American sanctions, in a bid from the juggernaut bank to try and avoid charges.
What happened: In 2019, the US Department of Justice charged Halkbank with bank fraud, conspiracy and money laundering, accusing the bank of “participation in a multibillion-dollar scheme to evade US sanctions on Iran,” according to a press release at the time.
Starting in 2012, Halkbank employees used entities in Turkey, Iran and the United Arab Emirates to evade sanctions related to Iran’s access to the US financial system, restrictions on Iranian energy sales and restrictions on the supply of gold to the Iranian government. Halkbank specifically helped Iran purchase gold using proceeds from oil and gas sales that were deposited at Halkbank, the DOJ said at the time.
The DOJ accused unnamed “high-ranking” Turkish and Iranian officials of participating in the scheme. Halkbank is majority-owned by the Turkish government.
