Halkbank and US Justice Department reach deferred prosecution agreement

Turkish public lender Halkbank and the US Justice Department have reached a deferred prosecution agreement that would effectively conclude a long-running legal saga, according to court documents made public Monday. The pact, which requires court approval, represents a significant diplomatic and legal breakthrough in a case that has strained bilateral relations for nearly a decade.

US attorney cites national security interests

US Attorney for the Southern District of New York Jay Clayton communicated the agreement in a letter to District Court Judge Richard Berman, stating 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." Clayton emphasized that "this agreement by Halkbank furthers the United States' compelling interests in combatting terrorist financing and financial support for the government of Iran." He characterized the pact as "strongly in the public interest," noting "the national security and foreign policy interests furthered by the Agreement are unique and extraordinary," with explicit reference to Turkish diplomatic efforts that facilitated the release of Israeli hostages in Gaza and a 2025 ceasefire agreement.

No admission of wrongdoing or fines

Halkbank's statement published on Türkiye's Public Disclosure Platform clarified the terms of the settlement, emphasizing the bank "will not admit any criminal wrongdoing and will not pay judicial or administrative fines." Under the agreement, Halkbank will engage an expert firm to conduct a compliance review and submit a report to the Treasury Department's Office of Foreign Assets Control, with a copy provided to prosecutors. Following this process, both parties will jointly request dismissal of the case at the US District Court for the Southern District of New York.

Nearly decade-long legal battle concludes

Once court approval is secured, the criminal proceedings against Halkbank in the United States, which have continued for approximately nine years, will be fully concluded. The Office of Foreign Assets Control has additionally informed the bank that it is closing its administrative review without further action. The resolution follows the US Supreme Court's October rejection of Halkbank's appeal to review a lower court ruling that the public lender was not immune to prosecution under common law.

Bank anticipates strengthened international position

Halkbank expressed confidence that the settlement will enhance its financial standing by improving access to international funding, correspondent banking networks, and global markets. In its statement, the 88-year-old institution affirmed its commitment to regulatory compliance: "Serving our country's economy for 88 years, our Bank will maintain its activities in compliance with all local and international regulations and in a robust, trustworthy and seamless manner in the future just like it has done so in the past, and will continue to contribute to the growth of both the banking sector and our country's economy." The agreement awaits discussion during a previously scheduled hearing Wednesday before Judge Berman.