Türkiye’s Halkbank Takes U.S. Sanctions Case to Supreme Court Again
halkbank
Türkiye’s state-owned lender Halkbank has once again petitioned the U.S. Supreme Court, seeking to challenge a lower court ruling that permits its criminal prosecution over allegations of evading U.S. sanctions on Iran. The appeal comes after an October 2024 decision by the 2nd U.S. Circuit Court of Appeals in Manhattan, which allowed the case to proceed.
Robert Cary, a U.S.-based lawyer representing Halkbank, confirmed in a letter to the appeals court that the petition was submitted by the Supreme Court’s filing deadline on Monday. However, the document had yet to be published on the Court’s website, and Cary did not respond to inquiries for comment.
Fraud and Conspiracy Allegations at the Heart of the Case
Halkbank pleaded not guilty to charges of fraud, money laundering, and conspiracy, stemming from accusations that it used money service businesses and front companies in Türkiye, Iran, and the UAE to facilitate transactions that violated U.S. sanctions targeting Iran’s economy.
First filed in 2019, the case has long been a point of contention in U.S.-Türkiye relations. Turkish President Recep Tayyip Erdoğan has described the charges as “unlawful” and “ugly,” reflecting broader tensions between the two NATO allies over issues such as U.S. support for PKK/YPG in Syria, Türkiye’s S-400 missile purchase from Russia, and strategic cooperation gaps.
Supreme Court Revisits Foreign Immunity Debate
This marks the second time Halkbank’s case has reached the Supreme Court. In 2023, the court ruled that the Foreign Sovereign Immunities Act (FSIA) — designed to protect foreign governments from civil liability — does not apply to criminal cases.
However, the Court’s 7-2 decision also required the 2nd Circuit to reassess whether Halkbank might qualify for common law immunity, which led to the October 2024 ruling now under appeal. The outcome could have significant implications for how foreign state-owned entities are treated under U.S. criminal law.
Diplomatic Backdrop: Leaders Talk Amid Legal Tensions
Despite legal frictions, Erdoğan and then-U.S. President Donald Trump spoke on the phone the same day the appeal was filed. Both leaders described the call as “productive” and reportedly invited each other for official visits, signaling efforts to maintain diplomatic dialogue amid ongoing disputes.
