A U.S. appeals court has denied immunity to Turkey’s Halkbank from prosecution for allegedly assisting Iran in evading U.S. sanctions. The decision indicates that foreign state-owned corporations may be held accountable for criminal conduct related to commercial activities in the U.S.
On Tuesday, in a significant legal development, the Second U.S. Circuit Court of Appeals in Manhattan dismissed the immunity claims of Turkey’s state-owned Halkbank regarding U.S. criminal allegations that it facilitated Iran’s evasion of American sanctions. The court determined there is no common law precedent that grants absolute immunity to a foreign state-owned corporation from prosecution in the United States when the conduct involves alleged criminal activities closely tied to commercial operations. This ruling opens the door for continued U.S. legal action against Halkbank, intensifying scrutiny on the bank’s role in the sanctions evasion scandal and its broader implications for U.S.-Turkey relations.
The case centers on allegations that Halkbank, a Turkish state bank, engaged in financial transactions that helped Iran circumvent U.S. sanctions, which were imposed to limit Iran’s nuclear ambitions and influence in the region. The U.S. government has pursued legal action against the institution, asserting that such conduct undermines international sanctions aimed at promoting global security. The court’s ruling highlights the ongoing tension between U.S. enforcement of sanctions and foreign entities’ legal standing within U.S. jurisdiction, particularly concerning state-owned enterprises.
The ruling by the Second U.S. Circuit Court of Appeals signifies an important moment in the legal landscape regarding foreign state entities and their accountability under U.S. law. It reinforces the stance that no corporation, regardless of its state ownership, is beyond the reach of U.S. criminal prosecution in matters of financial misconduct related to sanctions. This could have lasting ramifications, not only for Halkbank but also for international financial institutions and their operations involving sanctioned nations.
Original Source: www.jpost.com
