US to end prosecution of Turkiye’s Halkbank over alleged business with Iran

In March 2026, the US government tentatively agreed to drop the criminal case against Turkiye's Halkbank, which was accused of evading sanctions against Iran. The US Department of Justice cited "national security and foreign policy considerations" as the reason for the settlement, specifically mentioning Turkiye's role in negotiating a ceasefire between Israel and Hamas and securing the release of captives in Gaza. As part of the agreement, Halkbank will engage a third party to review its sanctions and anti-money laundering compliance. The bank will also refrain from conducting transactions with Iranian entities involving US people or financial institutions. The US prosecutors stated that this agreement serves US interests in combating terrorist financing and financial support for the Iranian government.

The U.S. has reached a tentative deal to end the prosecution of Turkish bank Halkbank, which was accused of violating sanctions by conducting business with Iranian entities. Court documents filed as part of the agreement indicate that Turkey's assistance played a significant role in achieving the Israel-Hamas cease-fire. The deal resolves a long-standing legal battle between the U.S. and Halkbank, stemming from allegations of illicit financial transactions. The agreement's specifics and the exact nature of Turkey's assistance in the cease-fire were not detailed in the initial reports. The resolution comes after years of legal proceedings and diplomatic tensions surrounding the case.