US prosecutors say Turkish assistance in negotiating ceasefire and release of captives in Gaza contributed to settlement.
Published On 10 Mar 2026
The United States has tentatively agreed to drop a criminal case accusing Turkiye’s state-run Halkbank of participating in a multibillion-dollar scheme to evade sanctions against Iran.
In a document filed with the US District Court for the Southern District of New York on Monday, prosecutors said resolving the case would be in the “best interests” of the US government, a move that would end a years-long prosecution that has strained relations between Washington and Ankara.
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Prosecutors said “unique and extraordinary national security and foreign policy considerations” contributed to the settlement, including Turkiye’s assistance in securing October’s ceasefire deal between Israel and Hamas and the release of Israeli captives held in Gaza.
“This unique and substantial public interest in supporting the release of the hostages weighed heavily in the government’s assessment of the appropriate resolution of this case,” the US Department of Justice said in the filing.
Halkbank will engage a mutually agreed-upon third party to review the lender’s sanctions and anti-money laundering compliance as part of the deal, the Justice Department said.
The bank will also refrain from “conducting or facilitating” any transactions with the Iranian government, Iranian people or Iranian entities that in