Halkbank, US Justice Department agree to deferred prosecution

WASHINGTON

Turkish state lender Halkbank and the United States Justice Department have agreed to enter a deferred prosecution agreement that would effectively end ongoing litigation, according to court records unsealed on March 9.

US Attorney for the Southern District of New York Jay Clayton wrote in a letter to U.S. District Court Judge Richard Berman that the Justice Department "believes the resolution of these charges against Halkbank on the terms and conditions set forth in the Agreement is in the best interests of the United States."

"This agreement by Halkbank furthers the United States' compelling interests in combating terrorist financing and financial support for the government of Iran," the U.S. attorney wrote.

"Accordingly, this Agreement is strongly in the public interest. The national security and foreign policy interests furthered by the Agreement are unique and extraordinary," he added, also referring to Turkish diplomatic efforts that helped facilitate the release of Israeli hostages in Gaza and a 2025 ceasefire in the war-ravaged Palestinian enclave.

Under the agreement, Halkbank will engage with a third-party to review its sanctions and anti-money laundering compliance efforts, the Justice Department said. A subsequent report will be submitted to the Treasury Department's Office of Foreign Assets Control and the U.S. attorney's office "to remediate the offense conduct charged in the superseding indictment," Clayton wrote.

The pact will need to be approved by the court, and Berman said the matter would be discussed during a previously scheduled hearing on March 11.

In a statement published on Türkiye's Public Disclosure Platform (KAP), Halkbank noted that under the settlement, it will not admit any criminal wrongdoing and will not pay judicial or administrative fines.