A group of Democratic US senators are questioning the US Justice Department’s decision to reach a deal with Turkey’s state-run Halkbank in March to resolve a long-running criminal case over alleged sanctions violations involving Iran, Bloomberg reported.
Led by Sen. Adam Schiff, a Democrat representing the state of California, the lawmakers sent a letter on Wednesday to Acting Attorney General Todd Blanche seeking details about the March agreement, which would allow the bank to avoid criminal charges and financial penalties. The deal is currently under review by a federal judge.
The senators asked whether prosecutors were pressured by President Donald Trump or other administration officials and why the agreement does not require Halkbank to admit wrongdoing or pay a fine.
“The timing of this agreement, coinciding with President Trump’s initiation of a war against Iran that he justified in part by citing Iran’s history of terrorist attacks against US citizens, makes the Department’s decision even more incomprehensible,” the senators wrote.
The Justice Department has not immediately commented on the lawmakers’ concerns.
The proposed agreement would end a case that has strained relations between Washington and Ankara for years. Under the terms, Halkbank would commit not to engage in transactions benefiting Iran and would accept oversight from an independent monitor to ensure compliance with US sanctions and anti–money laundering rules.
If the bank meets these conditions, the charges are expected to be dismissed. No financial penalty is included in the deal.
US Attorney Jay Clayton said the agreement supports efforts to combat terrorist financing and restrict financial support to the Iranian government.
Halkbank said it does not admit any wrongdoing but expects the agreement to fully resolve the case.
The case dates back to 2019, when US prosecutors charged the bank with fraud, money laundering and conspiracy, accusing it of helping Iran evade sanctions through a complex scheme involving roughly $20 billion in oil and gas proceeds. The funds were allegedly moved through the US financial system using front companies and disguised transactions, including fictitious food trade deals.
“The sanctions evasion scheme, involving billions of dollars, was a critical financial lifeline for the Iranian regime during the same years it carried out wide-scale global terrorist activities, which included the kidnapping, torture, and murder of Americans,” the senators wrote.
They said the deal with Halkbank could undermine sanctions enforcement and deny compensation to victims of terrorism.
The prosecution was linked to earlier cases involving Turkish-Iranian gold trader Reza Zarrab, who pleaded guilty in 2017 and later testified against Halkbank executive Mehmet Hakan Atilla. Atilla was convicted in 2018 and served a prison sentence in the United States before returning to Turkey.
The Halkbank case has long been a source of tension between the two NATO allies. Turkish President Recep Tayyip Erdoğan has repeatedly criticized the prosecution and previously expressed expectations that the issue would be resolved.
The legal battle has also reached the US Supreme Court, which in 2023 ruled that foreign state-owned entities are not automatically immune from criminal prosecution, allowing the case to proceed.
The proposed settlement comes amid improving ties between Washington and Ankara following Trump’s return to the presidency, potentially removing one of the most contentious issues in bilateral relations.
The senators have requested a response from the Justice Department by April 30.