Halkbank Loses Immunity Claim in US Sanctions Evasion Case

The US Court of Appeals has denied Halkbank’s request for immunity from charges alleging its role in helping Iran evade US sanctions, indicating no absolute immunity exists for foreign state-owned corporations in such criminal cases.

On Tuesday, a US appeals court dismissed the appeal from Halkbank, a Turkish state-owned bank, for immunity against allegations of facilitating Iran’s evasion of American sanctions. The decision from the 2nd US Circuit Court of Appeals, located in Manhattan, clarified that there exists no legal foundation in common law that allows a foreign state-owned enterprise to assert absolute immunity from prosecution regarding alleged criminal activities tied to its commercial operations. This ruling has significant implications for Halkbank as it continues to face scrutiny from US authorities over its involvement in transactions that contravene American sanctions.

The case surrounding Halkbank highlights the increasing tension between the United States and Iran, particularly concerning sanctions imposed on Iran following its nuclear program and related activities. The US has undertaken a series of legal actions against foreign entities perceived to undermine these sanctions, reflecting its broader strategy to deter international financial support for Iran. The ruling by the 2nd US Circuit Court of Appeals underscores the accountability of state-owned companies and the potential for legal repercussions in the international financial domain.

The refusal of the US appeals court to grant immunity to Halkbank underscores a clear stance against the circumvention of sanctions and reflects the legal complexities surrounding the actions of foreign state-owned entities. As this case progresses, it may set important precedents for how international financial laws are enforced against foreign corporations involved in sanction evasion.

Original Source: www.jpost.com