NEW YORK, June 11, 2026 — The U.S. Department of Justice has formally asked a federal court in Manhattan to dismiss the long-running criminal case against Turkey’s state-owned lender, Halkbank, marking a major step toward ending a legal battle that has lasted nearly nine years.
The filing was submitted jointly by federal prosecutors and Halkbank to the U.S. District Court for the Southern District of New York after the bank completed compliance obligations required under a Deferred Prosecution Agreement (DPA) that took effect in March 2026.
According to court documents, an independent compliance report was delivered on time to both the U.S. Department of Justice and the Office of Foreign Assets Control (OFAC). Following the submission, both parties jointly requested that the court formally dismiss the criminal proceedings.
If the federal judge approves the request, the case—which began with allegations that Halkbank helped facilitate transactions involving Iranian funds in violation of U.S. sanctions—will be fully closed. The bank has consistently denied wrongdoing throughout the proceedings. Under the settlement framework, Halkbank does not admit criminal liability and will not pay criminal or administrative fines.
The dispute had become one of the most sensitive issues in U.S.-Turkey economic relations. Prosecutors and the bank reached an agreement earlier this year to end the case, provided Halkbank fulfilled specific compliance and monitoring requirements. Authorities have since indicated that those conditions were met.
Market participants view the development as a significant reduction in legal uncertainty surrounding the lender. The announcement was positively received by investors, with attention now focused on the court’s final decision regarding the dismissal request.
Why it matters: A court-approved dismissal would bring an end to one of the most prominent international legal cases involving a Turkish financial institution, removing a longstanding source of uncertainty for Halkbank and potentially improving investor sentiment toward Turkey’s banking sector.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök