Understanding $ 100 million, proposed by Erdogan to Trump. What is known about the process in which a large bank in Turkey confronts heavy accusations
Ankara officials proposed to settle a US -filed process against Turkey's State Bank for about 100 million dollars, during the meeting between President Donald Trump and his Turkish counterpart, Recep Tayyip Erdogan, which took place at the White House last month, said two sources for the Reuters news agency.
According to the discussed proposal, which included additional conditions, the bank would not recognize its guilt in this case -a key priority for Ankara -sources said familiar with discussions.
Halkbank is experiencing accusations of fraud, money laundering and conspiracy in the United States for helping Iran avoid American economic sanctions related to its nuclear program. The bank pleaded innocent.
Erdogan's press office refused to comment on any discussions on an understanding, when he was contacted by Reuters. The White House did not respond to a request to send a point of view. Halkbank, the fourth creditor in Turkey after assets, did not offer an immediate reaction.
Relationships between Turkey and US
Any kind of understanding in this case could support Ankara's efforts to repair her relationship with Washington, which was undermined by Turkey's decision to purchase Russian S-400 missile systems in 2019, during Trump's first term of president.
The United States has canceled the planned sale of F-35 fighter jets to Turkey in response and excluded it from a common aircraft production program. They also imposed sanctions on the main acquisition body in the field of Defense in Turkey. The process against Halkbank was later filed in that year.
The bilateral relations between the two NATO member countries are now improving, in part due to the friendly personal ties between the two leaders, although the state visit has failed to obtain Trump's prompt approval in terms of Raising US and the purchase of F-35 aircraft, as Ankara had hoped.
Reuters mentions that he could not determine what specific conditions were discussed in the discussions at the White House last month about a possible understanding in the Halkbank case.
It is also clear how the American part reacted to the Turkish proposal or if the discussions continued after the meeting that took place between Trump, Erdogan, their high -ranking secretaries and ministers.
Edogan wanted to talk to Trump about the bank
The US Supreme Court refused to hear the latest appeal filed by Halkbank on Monday, maintaining the decision of a lower court that the criminal process of the US government must continue.
The decision caused the 10% decrease in Halkbank shares and, in the absence of an agreement, opens the way for a possible process, although the bank announced that efforts are made to reach a solution.
“The initiatives to find a legal basis for conciliation within the agreements between the United States and Turkey also evolve in a positive direction,” the bank announced, after the decision was pronounced.
Erdogan, sitting next to Trump after having arrived at his first reception at the White House over the past six years, told reporters that they would discuss, among other issues, about Halkbank. He previously described the accusations as “illegal” and “ugly”.
Gon Tol, director of the Turkish program of the Institute for the Middle East in Washington, reported the potential 100 million dollar fine, in a message published on X shortly after the White House meeting, qualifying it as a possible “concrete step” in otherwise contradictory discussions.
The decision of the Supreme Court “does not mean that an agreement cannot be reached between Ankara and Washington,” she wrote on Monday.
The accusations made to the bank
Prosecutors at the Federal Prosecutor's Office in Manhattan have accused Halkbank of using money transfer services and companies in Iran, Turkey and the United Arab Emirates to help Iran circumvents the sanctions imposed by the US.
According to prosecutors, Halkbank secretly transferred $ 20 billion into restricted funds, converted gold and cash revenues for the benefit of Iranian interests and documented false food transport to justify oil income transfers.
In the appeal filed with the Supreme Court, Halkbank claimed that, as a Turkish state entity, it should be immune to legal actions in the courts of other countries.
Some analysts have speculated that any agreement could be greater than the $ 100 million who, according to sources, were proposed at the White House.
Between 2009 and 2015, eight European banks – including HSBC, BNP Paribas, Standard Chartered and Credit Suisse – were sanctioned with over $ 14 billion for violating various US sanction programs, among other crimes.
Only the French Bank BNP Paribas has agreed to pay almost $ 9 billion to withdraw the accusations of violating US sanctions against Sudan, Cube and Iran. The bank pleaded guilty.
