**Halkbank Appeals to Supreme Court to Dismiss Criminal Charges**
Turkey’s state-owned Halkbank has requested the U.S. Supreme Court to dismiss criminal charges alleging that the bank assisted Iran in circumventing economic sanctions. In an appeal submitted to the high court on Wednesday, Halkbank argued that it is shielded from prosecution by the principle of sovereign immunity. This appeal follows a federal appeals court decision in October that rejected the bank’s claims.
Prosecutors accuse Halkbank of facilitating the release of $20 billion in restricted Iranian funds and laundering at least $1 billion through the U.S. financial system. The appeal addresses a question the Supreme Court left unresolved in 2023, when it determined that Halkbank was not protected by a 1976 federal statute that grants immunity to foreign governments in many situations. The court clarified that this law applies solely to civil lawsuits, not criminal cases.
Halkbank now asserts that it is immune under “common law,” a set of legal principles established by judicial decisions that may apply in the absence of statutory law. The bank contended in its appeal, “No court in history has ever criminally tried the instrumentality of another co-equal sovereign — even in cases involving commercial conduct.”
Bloomberg Intelligence analyst Elliott Stein noted in April that Halkbank’s appeal faces significant challenges and is “unlikely to succeed.” He suggested that the bank’s most viable option may be to negotiate a settlement with the Trump administration, potentially costing between $1 billion and $2 billion. Depending on the timing of the Justice Department’s response, the Supreme Court may not announce its decision on whether to hear the appeal until its new term begins in October. The case is identified as Turkiye Halk Bankasi v. United States, 24-1144.
**FAQ**
**What are the implications of Halkbank’s appeal to the Supreme Court?**
Halkbank’s appeal could set a significant precedent regarding the prosecution of foreign state-owned entities in the U.S., particularly concerning sovereign immunity and economic sanctions.
