Economics
Ziraat Never Involved in Sanctions Case Roiling Turkey, CEO Says
- Gold trader Reza Zarrab didn't have an account at Ziraat Bank
- Ziraat's issues in the U.S. stem from 2011 compliance talks
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An audit of Turkey’s state-run Ziraat Bank by the Federal Reserve Bank of New York wasn’t linked to the prosecution of a Turkish-Iranian gold trader, Chief Executive Officer Huseyin Aydin said, rejecting what he called "insinuations in certain portions of the Turkish media."
The bank’s troubles with U.S. regulators relate to historical deficiencies in its compliance processes, Aydin told reporters on Saturday. He spoke as Turkey braced itself for potential fallout from the arrest in Miami of Reza Zarrab, also known as Riza Sarraf, on allegations including money laundering and sanctions evasion. Preet Bharara, a U.S. attorney in New York, announced the charges on March 21.