Turkish Bank Worked With Iran to Violate US Sanctions, Justice Dept. Says
A Turkish government-owned bank was charged with fraud, money laundering and conspiracy to violate the International Emergency Economic Powers Act after working with Iran to evade U.S. sanctions, the Justice Department said in an Oct. 15 press release. The bank -- Turkiye Halk Bankasi A.S., also known as Halkbank -- helped run the “multibillion-dollar scheme” by deceiving U.S. regulators and foreign banks and lying to U.S. authorities, the press release said.
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Halkbank used money-service business and front companies in Iran, Turkey and the United Arab Emirates to avoid restrictions on Iran’s access to the U.S. financial system, revenue from oil sales and supply of gold, the Justice Department said. The Central Bank of Iran, the National Iranian Oil Company and the National Iranian Gas Company deposited revenue from gas sales into Halkbank when selling to Turkey, accumulating “billions of dollars’ worth of funds” in the accounts.
Iran could not withdraw the money because of U.S. sanctions, so Halkbank used the accounts to conduct “several types of illicit transactions for the benefit of Iran,” including buying gold for the country. Halkbank also transferred the money to certain “Iranian customers” after labeling the sales as a “humanitarian exception” to U.S. sanctions, even though “no purchases of food or medicine actually occurred,” the Justice Department said. Halkbank ultimately transferred about $20 billion in funds to Iran, according to the press release.
Justice’s announcement follows charges levied against nine other defendants, including bank employees and Turkey’s former economy minister. “This is one of the most serious Iran sanctions violations we have seen,” Assistant Attorney General for National Security John Demers said in a statement, “and no business should profit from evading our laws or risking our national security.”