After nearly a decade of legal friction, Halkbank and the US Department of Justice have reached a Deferred Prosecution Agreement (DPA), effectively bringing the long-standing case regarding Iran sanctions to a close.

Perhaps the most significant aspect is that Halkbank will not pay any monetary penalties and has made no admission of criminal wrongdoing.

Once an independent compliance report is submitted to the US Treasury’s OFAC and the Southern District of New York, a joint motion to permanently dismiss the case will be filed.

The US Treasury (OFAC) has confirmed it is closing all administrative processes regarding the bank without further action.

As part of the agreement, the bank will appoint an independent compliance expert, abstain from using the US financial system for transactions with the Iranian government, and cooperate regarding assets linked to Reza Zarrab (to the extent allowed by Turkish law).

The bank stated it expects this to improve its international funding access, correspondent network, and overall financial standing.