U.S. Court Denies Immunity to Turkey’s Halkbank in Iran Sanctions Case

A U.S. appeals court has ruled against Turkey’s Halkbank regarding its request for immunity from prosecution for allegedly helping Iran evade sanctions. The court determined that common law does not allow for absolute immunity for foreign state-owned corporations in such cases.

A U.S. appeals court has dismissed a plea from Turkey’s state-owned bank, Halkbank, seeking immunity from criminal prosecution related to allegations of facilitating Iran’s circumvention of American sanctions. The 2nd U.S. Circuit Court of Appeals in Manhattan clarified that no common law provision grants absolute immunity to foreign state-owned enterprises concerning alleged criminal activities tied to their commerce. This ruling reinforces the commitment of U.S. authorities to hold accountable entities that engage in illegitimate dealings that undermine international sanctions.

The case against Halkbank revolves around allegations that the bank played a significant role in helping Iran evade U.S. sanctions aimed at limiting Iran’s access to the global financial system. The legal principles concerning the immunity of foreign state-owned entities from prosecution are critical to international finance and diplomacy, making this ruling significant beyond its immediate impact. It highlights the ongoing tensions between the U.S. and countries that engage in economic activities with Iran despite sanctions, and underscores the broader implications for international relations and compliance with U.S. laws.

In summary, the rejection of Halkbank’s immunity claim by the U.S. appeals court signifies a crucial legal precedent regarding the accountability of foreign entities in U.S. jurisdiction, especially in matters pertaining to international sanctions. This ruling not only impacts Halkbank but also serves as a clear message to other foreign businesses about the potential consequences of circumventing U.S. sanctions.

Original Source: www.jpost.com