The US Department of Justice has formally asked a federal judge to dismiss its criminal case against Halkbank, a Turkish state-run lender. This move comes after Halkbank and the US federal government agreed in March to end the long-running criminal case, which was seen as a lingering irritant in relations between NATO allies Turkey and the US.

Background of the Case

Halkbank was charged during Trump’s first term in office with helping Iran evade American economic sanctions. The case involved allegations of secretly transferring $20 billion of restricted funds, converting oil revenue into gold and cash to benefit Iranian interests, and documenting fake food shipments to justify transfers of oil proceeds.

The Justice Department has said dropping the prosecution would further the US interest in curbing support for Iran. The agreement bars Halkbank from entering transactions that benefit Iran and requires a monitor to review Halkbank’s sanctions and anti-money-laundering compliance.

No money changes hands in the agreement, and the bank did not admit criminal wrongdoing. Halkbank had pleaded not guilty in the case.

Recent Developments

After the deal was announced, Manhattan-based US District Judge Richard Berman paused the case for 90 days to allow Halkbank to demonstrate compliance with its terms. Halkbank hired Ernst & Young to review its compliance policies.

In a court filing, prosecutors with the Manhattan US Attorney’s office said the review did not identify any areas of noncompliance by Halkbank and asked Berman to sign off on their motion to dismiss the case.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.