A long-running criminal case that has tangled international diplomacy and billions in alleged sanctions evasion is back on the calendar in Manhattan federal court, with a conference set for Tuesday, March 3. Türkiye’s state-owned Halkbank, indicted in 2019 on charges that it helped Iran dodge U.S. sanctions, remains in the dock and has pleaded not guilty.
Status conference set for March 3
A recent scheduling order sets a control conference for March 3, marking the next clear procedural step after a January hearing was canceled, according to Reuters. Lawyers for Halkbank and Manhattan federal prosecutors are expected to appear before U.S. District Judge Richard Berman, Courthouse News Service reported.
Charges and allegations
U.S. prosecutors charged Halkbank in 2019 with counts including bank fraud, money laundering and conspiracy, as outlined in the original indictment. The Department of Justice alleges the bank joined schemes that moved roughly $20 billion in restricted Iranian funds through front companies, gold trades and sham shipments, according to the Department of Justice. Halkbank has denied the allegations.
How immunity fights shaped the case
A central battle in the case has been whether a state-owned lender can face a U.S. criminal prosecution. In April 2023 the U.S. Supreme Court ruled that the Foreign Sovereign Immunities Act does not block such a criminal case and sent remaining common-law immunity issues back to the lower courts, the U.S. Supreme Court opinion shows. On Oct. 22, 2024, the Second Circuit concluded that Halkbank is not entitled to common-law immunity, clearing the way for the Manhattan proceedings to move forward, according to the appeals court's opinion.
Diplomatic and market ripple
The prosecution has repeatedly strained relations between Washington and Ankara. President Recep Tayyip Erdoğan has criticized U.S. moves in the case as “an unlawful, ugly step,” Al Jazeera reported. Key rulings have also shaken Halkbank’s share price and drawn sharp attention from Turkish markets, the Financial Times reported.
What to watch on Tuesday
At Tuesday’s status conference, the court could set a timetable for motions and discovery, require written authorization for any lawyers appearing on the bank’s behalf, or take other steps that will determine how and when the case moves toward trial. Judge Berman has previously resisted requests to pause the proceedings and has pressed both sides on procedural details, as Courthouse News Service has reported from earlier hearings.
Legal stakes
If prosecutors ultimately prevail, Halkbank could face criminal fines and other monetary remedies, and analysts have estimated potential exposure in the low billions depending on how any fines and civil penalties are calculated. Beyond the dollars at stake, the case is being closely watched for what it signals about how U.S. criminal law will treat state-owned banks and for the precedent it may set on sanctions enforcement, a significance underscored in the Supreme Court’s opinion.
