US Court Denies Halkbank’s Immunity in Iran Sanctions Case
The 2nd US Circuit Court of Appeals has denied Halkbank’s request for immunity from US criminal charges related to sanctions evasion on Iran, establishing that foreign state-owned companies are not exempt from prosecution for alleged criminal activities connected to their commercial dealings.
A federal appeals court in Manhattan dismissed a claim for immunity made by Turkey’s state-run Halkbank against US criminal accusations regarding its involvement in circumventing sanctions imposed on Iran. The 2nd US Circuit Court of Appeals ruled that there is no legal basis under common law allowing foreign state-owned enterprises to receive absolute immunity from prosecution in the US for alleged criminal activities linked to their commercial operations. This decision upholds the United States’ authority to pursue legal action against foreign government corporations suspected of engaging in unlawful activities on its soil.
Halkbank, a significant state-owned financial institution in Turkey, has been embroiled in controversy over allegations of facilitating Iran’s evasion of US sanctions. The legal battle stems from actions that allegedly occurred while the sanctions were in place, aimed at restricting Iran’s access to the international financial system in response to its nuclear program and other controversial activities. This ruling by the 2nd Circuit Court represents a critical legal precedent regarding the extent to which foreign entities are subject to US law, particularly concerning sanctions violations.
The ruling by the 2nd US Circuit Court of Appeals signifies a notable development in the ongoing struggle between international business practices and US sanctions law. By denying Halkbank immunity, the court reinforces the US government’s commitment to enforcing sanctions and holds foreign entities accountable for their legal obligations within the US jurisdiction. This case may have broader implications for other foreign state-owned enterprises operating in the US, particularly in terms of their exposure to American legal challenges regarding sanctions compliance.
Original Source: www.jpost.com
