U.S. Reaches Tentative Deal to Drop Charges Against Turkish Bank

Halkbank, a state-run Turkish bank, was accused of doing business with Iranian entities in violation of U.S. sanctions.

Published on Mar. 9, 2026

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The Trump administration has reached a tentative deal to drop criminal charges against the Turkish state-run bank Halkbank, which was accused of participating in a multibillion-dollar scheme to evade U.S. sanctions on Iran. The proposed settlement cites 'unique and extraordinary national security and foreign policy considerations,' particularly Turkey's assistance in negotiating the release of hostages from a Hamas terrorist attack in Israel in 2023.

Why it matters

The case against Halkbank was a source of prolonged internal battles during the first Trump administration, with Attorney General William Barr urging federal prosecutors to forgo indicting the bank. The proposed deal raises questions about political interference and the reasons behind the decision to drop the charges against the state-run bank.

The details

Under the proposed deferred prosecution agreement, Halkbank has agreed to hire an outside expert to review its compliance with sanctions and anti-money-laundering rules. The bank was accused of helping move billions of dollars' worth of Iranian oil revenue, with senior bank officials allegedly being protected by high-ranking Turkish officials who were bribed.

  • The case was opened under the Obama administration, but an indictment was not brought until 2019, under the first Trump administration.
  • The cease-fire between Israel and Hamas was announced in October 2023.

The players

Halkbank

A state-run Turkish bank that was accused of participating in a multibillion-dollar scheme to evade U.S. sanctions on Iran.

Recep Tayyip Erdogan

The president of Turkey, who has long pressed former President Trump to quash the case against Halkbank.

William P. Barr

The former U.S. Attorney General who urged federal prosecutors in New York to forgo indicting Halkbank and instead let it pay a fine.

Geoffrey Berman

The former U.S. Attorney for the Southern District of New York who rejected the terms proposed by Barr and ultimately indicted Halkbank in 2019.

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What’s next

A federal judge will hold a hearing on Wednesday to question both sides about the terms of the proposed deferred prosecution agreement.

The takeaway

The proposed deal to drop charges against Halkbank raises concerns about political interference and the influence of foreign governments on U.S. law enforcement decisions, particularly in cases involving national security and foreign policy considerations.