Halkbank’s Immunity Claim Rejected by U.S. Appeals Court Regarding Sanctions Violations

A U.S. appeals court denied Halkbank’s claim for immunity against criminal sanctions violation charges, emphasizing that no common law supports immunity for foreign state-owned companies engaged in alleged unlawful activities.

On Tuesday, the 2nd U.S. Circuit Court of Appeals in Manhattan ruled against Turkey’s state-owned Halkbank’s request for immunity from U.S. criminal charges concerning violations of sanctions imposed on Iran. The court determined that there was no legal basis in common law allowing a foreign state-owned entity to claim absolute immunity for alleged criminal activities linked to its commercial operations. This decision paves the way for potential legal actions against the bank in relation to accusations that it assisted Iran in bypassing U.S. sanctions, thereby maintaining the accountability of foreign corporations under U.S. law.

The case against Halkbank is a critical aspect of broader U.S.-Iran relations and reflects the rigor with which American authorities are pursuing sanctions violations. The U.S. imposed sanctions on Iran primarily due to its nuclear program and various other security concerns. Parties involved in business dealings with Iran, especially those that may contravene U.S. sanctions, can face significant legal challenges if found culpable. Halkbank’s situation underscores the complexities and risks for state-owned enterprises engaging in international business, particularly in sensitive geopolitical contexts.

In conclusion, the recent ruling by the U.S. appeals court highlights that foreign state-owned corporations, such as Halkbank, are not exempt from U.S. law regarding criminal conduct tied to their commercial endeavors. This legal precedent could have significant implications for other foreign entities operating within U.S. jurisdiction, compelling them to reconsider their dealings with sanctioned states.

Original Source: www.jpost.com