While Halkbank does almost no business in the US, it has some ties to the nation’s financial system/Bloomberg
by BloombergTurkey’s Halkbank could be liable to pay $1 billion of dollars in fines as early as March 2020 if the lender continues to refuse to appear in a court case in New York.
A few more weeks of non-compliance by the state-owned lender, and it would be on the hook for the equivalent of the central bank’s net reserves. By mid-May 2020 Halkbank would be an entire year’s worth of Turkey’s economic output.
Last week, the US government asked a federal judge to impose a daily $1 million fine that would double each week the bank refuses to appear in the case.
Prosecutors charged the bank in October 2019 with aiding a yearslong scheme to help Iran evade US economic sanctions and access $20 billion in frozen oil revenue. Since then, Halkbank has refused to accept service of the indictment or answer the case, leading prosecutors to deem it a fugitive from justice.
While Halkbank does almost no business in the US, it has some ties to the nation’s financial system, which the government could limit or sever.
MOST READ
REGULATION
DIFC amends employment lawsREGULATION
DIFC introduces new leasing law
CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.
Loading More post
