US Court Denies Halkbank Immunity in Iran Sanctions Case

The US appeals court has denied immunity to Turkey’s Halkbank regarding charges of assisting Iran in violating US sanctions, asserting that foreign state-owned corporations can be prosecuted for alleged criminal conduct connected to their commercial activities.

A recent ruling by the 2nd US Circuit Court of Appeals dismissed Turkey’s state-owned Halkbank’s bid for immunity against criminal charges alleging that the bank assisted Iran in circumventing American sanctions. The court noted that there is no established common law that grants absolute immunity to foreign state-owned entities facing such allegations related to their commercial actions.

In the context of international trade and finance, compliance with sanctions is paramount for preventing illicit activities. The case involving Halkbank highlights the legal framework governing foreign state-owned enterprises within US jurisdiction, especially regarding allegations of aiding sanctioned nations. The ruling underscores the United States’ stance on foreign involvement in its sanctions enforcement, asserting that state-owned entities do not receive special protections when engaged in alleged criminal conduct.

The 2nd Circuit’s decision reinforces the US government’s commitment to enforcing sanctions against Iran, reiterating that foreign state-owned corporations are not shielded from prosecution for illegal activities. This ruling may have broader implications for other international entities engaged in similar actions, signaling a strict adherence to US sanctions legislation.

Original Source: www.jpost.com