The United States and Turkey’s state-owned lender Halkbank have reached a deferred prosecution agreement in a long-running criminal case centered on allegations that the bank helped Iran evade US sanctions. Under the arrangement, the case will be paused initially, and the charges could ultimately be dismissed if Halkbank complies with the conditions set out in the agreement.
The full text of the agreement has not yet been made public. However, according to the reports, Halkbank will be required to avoid transactions that benefit Iran and to strengthen its compliance and anti-money-laundering controls under outside oversight. Reuters reported that the agreement does not include a financial penalty. A hearing in the case is scheduled for March 11, when the parties are expected to outline the terms before the court.
The case dates back to 2019, when US prosecutors charged Halkbank with fraud, money laundering and conspiracy, accusing the bank of taking part in a scheme to move restricted Iranian funds through front companies and disguised transactions. Prosecutors alleged that the scheme helped Iran convert oil revenues into gold and cash despite US sanctions. Halkbank pleaded not guilty and denied the allegations.
Halkbank had sought to have the case thrown out by arguing that, as a state-controlled foreign bank, it was protected from prosecution under sovereign immunity principles. That argument was ultimately unsuccessful. The US Supreme Court first rejected Halkbank’s statutory immunity defense, and in October 2025 it declined to hear a further appeal, allowing the prosecution to continue.
The agreement marks a potentially significant step toward closing one of the most politically sensitive legal disputes between Ankara and Washington in recent years. If Halkbank fulfills the terms of the deal, the case is expected to be dismissed. If the conditions are breached, US prosecutors would retain the right to revive the case.
