Economics

Turkey’s Halkbank Faces U.S. Charges as Tensions Mount

  • Halkbank accused of scheme to circumvent Iran sanctions
  • U.S. official calls it a frontal assault on Turkey’s Erdogan
A tram and pedestrians pass a branch of Turkiye Halk Bankasi AS, or Halkbank, in Istanbul, Turkey.

Photographer: Kerem Uzel/Bloomberg

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The U.S. brought a criminal case against one of Turkey’s largest banks for aiding a scheme to evade sanctions against Iran, a move that carries political overtones as tensions build over Turkey’s military offensive in Syria.

In an indictment filed Tuesday in Manhattan federal court, prosecutors accused government-owned Halkbank of participating in a wide-ranging plot to violate prohibitions on Iran’s access to the U.S. financial system. The conspiracy involved high-ranking government officials in Iran and Turkey, the U.S. said.