Luc Cohen

Reported by Luc Cohen

(Excerpt shared below. To read full report, go to: https://www.reuters.com/world/us-supreme-court-rejects-challenge-by-turkeys-halkbank-prosecution-2025-10-06/)

The Supreme Court declined on Monday to hear another bid by Turkey’s state-owned lender Halkbank (HALKB.IS) to avoid fraud, money laundering and conspiracy charges in the United States for allegedly helping Iran evade American economic sanctions.

The justices turned away Halkbank’s appeal of a lower court’s ruling that let the criminal case brought by the U.S. government proceed, allowing that decision to stand. Halkbank shares closed 10% lower in Istanbul on the news.

The Supreme Court in 2023 threw out a previous decision by the same lower court that had permitted the case to move forward but at that time rejected a key defense mounted by the bank.

Brought by U.S. federal prosecutors in 2019, the case has been a thorn in U.S.-Turkey relations, with Turkish President Tayyip Erdogan calling it an “unlawful, ugly” step.

Halkbank has pleaded not guilty.