(Reuters) – A U.S. appeals court on Friday rejected a request by Turkey’s Halkbank to reconsider a ruling that said the U.S. Justice Department could prosecute the state-owned bank on charges that it helped Iran evade U.S. sanctions .
The New York-based 2nd U.S. Circuit Court of Appeals declined to let the full court reconsider a three-judge panel’s October rejection of Halkbank’s argument that it deserved immunity from prosecution.
The 2nd Circuit panel found no basis under age-old common law principles for foreign state-owned enterprises to be absolutely immune from U.S. prosecution related to commercial, non-governmental activities.
Halkbank said in filings asking the court to reconsider that the panel’s ruling “contradicts the long-standing principle of international law that one sovereign cannot bring criminal charges against another.”
The lead attorney did not respond to a request for comment but has previously said it may take the case to the U.S. Supreme Court, which has previously weighed in.
U.S. prosecutors charged Halkbank in 2019 for allegedly using money managers and front companies in Iran, Turkey and the United Arab Emirates to evade sanctions.
Prosecutors said Halkbank helped Iran secretly transfer $20 billion in restricted funds, converted oil revenues into gold and cash to benefit Iranian interests, and documented fake food shipments to justify transfers of oil proceeds .
Halkbank pleaded not guilty to bank fraud, money laundering and conspiracy. The case became a thorn in US-Turkey relations, with Turkish President Tayyip Erdogan calling the US accusations an “illegal, ugly” move.
