U.S. Supreme Court Rejects Halkbank’s Immunity Claim Once Again

A New Chapter in the Halkbank Case

The U.S. Supreme Court has once again denied Halkbank’s claim of immunity in the long-running sanctions case, paving the way for the criminal trial in New York to proceed. The Turkish state-owned bank had sought to avoid prosecution, arguing that it should be shielded under sovereign immunity, but the highest court in the United States refused the request for a second time.

Background of the Legal Battle

The case dates back to 2019 when federal prosecutors in Manhattan accused Halkbank of helping Iran evade U.S. sanctions. According to the indictment, the bank allegedly facilitated complex financial schemes that transferred roughly 20 billion dollars in restricted Iranian funds through networks involving Turkey, Iran, and the United Arab Emirates. The prosecutors claim that these transactions disguised oil revenues as legitimate trade, including fake food shipments. Halkbank, however, firmly denies all accusations, maintaining that it has done nothing illegal.

Immunity Defense Rejected Again

Halkbank’s lawyers argued that the bank could not be tried in the U.S. because it is an arm of the Turkish government and therefore protected under the Foreign Sovereign Immunities Act. In 2023, the Supreme Court had already rejected this argument, sending the case back to lower courts to consider whether the bank could be protected under common law immunity. After review, the lower court ruled against Halkbank, and now the Supreme Court has upheld that decision.

Diplomatic Tensions Between Ankara and Washington

The case has long been a sensitive issue in U.S.-Turkey relations. Turkish President Recep Tayyip Erdoğan previously condemned the case, calling it an “unjust and disgraceful step.” Meanwhile, the U.S. Department of Justice stated in August that common law principles do not protect state-owned corporations from criminal prosecution.

What Happens Next for Halkbank

This ruling effectively closes Halkbank’s legal avenues to claim immunity. The criminal trial in New York will now proceed, and if the bank is found guilty, it could face massive fines and further international financial restrictions. Beyond the courtroom, the outcome of this case could have lasting implications for diplomatic and economic relations between the two nations. (Cumhuriyet / Translated)

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