(CN) — Federal prosecutors can continue to prosecute a Turkish bank in a Manhattan courthouse for allegedly evading U.S. sanctions against Iran by laundering $20 billion of that nation’s oil and gas proceeds.
The bank — whose majority owner is the Government of Turkey — had claimed sovereign immunity and claimed it could not face prosecution in a U.S. Court because of the Foreign Sovereign Immunities Act. But the Second Circuit rejected that argument Friday and said because the bank was engaged in a commercial activity, the federal courts had jurisdiction to sit in judgment.
In his opinion, Circuit Judge Jose Cabranes said Halkbank officials had allegedly sought to skirt U.S. sanctions against Iran when they met with and held conference calls with U.S. Department of the Treasury officials.
“Although Halkbank is majority-owned by the Government of Turkey, such communications are plainly the type of activity in which banks, including privately owned correspondent banks, routinely engage,” Cabranes wrote in his 29-page opinion.
The case against Halkbank, also known as Turkiye Halk Bankasi, is one of the largest money-laundering cases to be prosecuted in the states and the six-count indictment unveiled two years ago rattled relations between the United States and Turkey.
Former President Donald Trump reportedly had tried to interfere in the case against the Turkish bank.





