Overview
- The Department of Justice filed to dismiss the Manhattan indictment on Wednesday after prosecutors said a 90-day compliance review found no violations of the deferred prosecution agreement.
- The March deferred prosecution deal requires an independent monitor to review Halkbank’s sanctions and anti-money-laundering controls and provides for dismissal of charges if the bank passes the 90-day check.
- Halkbank hired Ernst & Young to perform the mandated review, the bank did not admit wrongdoing, and no fine was imposed as part of the agreement.
- The outcome has drawn sharp political scrutiny from Democratic senators who point to high‑level U.S.–Turkey contacts, including President Erdoğan’s public comments about President Trump, and it sent Halkbank shares higher on Turkish markets.
- The resolution departs from past multibillion-dollar sanctions settlements by imposing only compliance oversight and leaves open the possibility the case could be reopened if the monitor finds problems during the agreed review period.