The US Department of Justice has moved to dismiss its criminal case against Türkiye Halk Bankası, better known as Halkbank, after reaching a deferred prosecution agreement with the Turkish state-owned lender. The case, which alleged the bank helped launder roughly $20 billion for Iran through front companies, had been grinding through courts since 2019.
What the deal actually looks like
The deferred prosecution agreement was filed between March 9 and 10, 2026, effectively pausing proceedings for 90 days while a compliance monitor reviews Halkbank’s operations. If the bank passes muster, particularly around Iran-related transactions, the DOJ plans to dismiss the indictment entirely.
The original charges were not small. The Southern District of New York filed an indictment on October 15, 2019, accusing Halkbank of conspiracy to defraud the United States, violations of the International Emergency Economic Powers Act (IEEPA), bank fraud, and money laundering. The core allegation was that the bank served as a conduit for approximately $20 billion in laundered funds benefiting Iran, routed through a network of front companies designed to dodge US sanctions.
Turkish President Recep Tayyip Erdoğan had previously called the charges against Halkbank “unlawful,” framing the prosecution as politically motivated.
