US Prosecutors Charge Halkbank with Six Offenses

Charges against Turkey's state-owned bank for attempting to evade Iran sanctions include bank fraud and money laundering.

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US Prosecutors Charge Halkbank with Six Offenses

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US federal prosecutors have filed charges against Halkbank in Manhattan federal court.

The six-count indictment includes conspiracy to defraud the US, conspiracy to violate the International Emergency Economic Powers Act, bank fraud, conspiracy to commit bank fraud, money laundering and conspiracy to commit money laundering.

In a statement, the Southern District of New York indicted the bank over its alleged participation in a scheme to evade US sanctions on Iran.

Turkish bank charged in Manhattan federal court for its participation in a multibillion-dollar Iranian sanctions evasion scheme https://t.co/2ZzbB6vehP
— US Attorney SDNY (@SDNYnews) October 15, 2019

According to the statement, Halkbank will have to answer for its conduct in a US court.

"The charges contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty," said the statement.

In July, Hakan Atilla, 48, the former deputy director-general at the Turkish state lender, was released from a federal prison. He was sentenced in May 2018 in New York for violating US sanctions on Iran.

İllüstrasyon: Elizabeth Williams/ AP

Process of the trial

* Reza Zarrab was arrested on December 21 within the scope of December 17-25 corruption and bribery investigation in Turkey. He was released after 70 days of imprisonment.

* Zarrab had been taken into custody in Miami city airport while trying to enter the United States and arrested on March 22.

* On his first hearing on April 27, Zarrab facing up to 95 years of imprisonment denied the accusations of conspiring to evade US sanctions against Iran, money laundering and bank fraud.

* The other defendant in the trial, former Halkbank Deputy General Director Mehmet Hakan Atilla is being charged with "evading US sanctions on Iran" and "bank fraud". Arrested on March 28, 2017, Atilla faced up to 50 years in prison and fine of 2 million dollars.

* In September 2017, then Minister of Economy Zafer Çağlayan, former Halkbank General Director Süleyman Aslan, Halkbank Deputy General Director in Charge of International Operations Levent Balkan and Zarrab's worker Abdullah Happani were added as defendants.

* On October 26, Zarrab pleaded guilty and it was announced by the state attorney's office on November 28.

* During the deposition, Zarrab admitted that he bribed then Minister of Economy Zafer Çağlayan and explained the business traffic he followed to evade embargo.

* On January 3, 2018, jury members found Mehmet Hakan Atilla guilty of five of six charges.

* Judge Richard Berman will announce his final verdict for Atilla in the hearing to be held on May 16, 2018. Atilla was sentenced to 32 months in prison on May 16, 2018. He was released on probation and returned to Turkey.