US Accuses Turkey's Halkbank of Scheme to Evade Iran Sanctions

A street vendor sells roasted chestnuts in front of a branch of Halkbank in central Istanbul, Turkey, January 10, 2018. REUTERS/Murad Sezer
A street vendor sells roasted chestnuts in front of a branch of Halkbank in central Istanbul, Turkey, January 10, 2018. REUTERS/Murad Sezer
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US Accuses Turkey's Halkbank of Scheme to Evade Iran Sanctions

A street vendor sells roasted chestnuts in front of a branch of Halkbank in central Istanbul, Turkey, January 10, 2018. REUTERS/Murad Sezer
A street vendor sells roasted chestnuts in front of a branch of Halkbank in central Istanbul, Turkey, January 10, 2018. REUTERS/Murad Sezer

US prosecutors on Tuesday charged Turkey’s majority state-owned Halkbank (HALKB.IS) with taking part in a multibillion-dollar scheme to evade US sanctions against Iran - an indictment that may complicate tension between NATO allies Washington and Ankara.

The charges unsealed in federal court in Manhattan mirror those against one of Halkbank’s former executives, Mehmet Hakan Atilla, who was found guilty and sentenced to prison after a trial in the same court last year.

The United States and Turkey are at odds over Turkey’s military offensive into northeastern Syria against Kurdish-led militia. US President Donald Trump announced a set of sanctions on Monday to punish Ankara for the invasion.

US Vice President Mike Pence will meet with Turkish President Tayyip Erdogan in Ankara on Thursday to urge a ceasefire and emphasize the Trump administration’s commitment to sanctions until a resolution is reached, the White House said.

“This indictment constitutes an additional step that does not contribute positively to the current situation of US- Turkey relations,” an official at the Turkish embassy in Washington told Reuters.

Turkey began its cross-border operation just days after Erdogan told Trump in a phone call on Oct. 6 that he would go ahead with a long-planned move against US-allied Kurds in the region, opening a fresh front in Syria’s eight-year civil war.

Trump moved US forces out of the way, an abrupt policy change after years of American troops fighting alongside the Kurd-led Syrian Democratic Forces against Islamic State.

Tuesday’s indictment is the latest development in a US criminal case that first became public in 2016 with the arrest in Miami of Reza Zarrab, a Turkish-Iranian gold trader accused of playing a central role in the sanctions evasion scheme. Atilla, a Halkbank deputy general manager, was arrested in New York the following year.

Zarrab pleaded guilty and testified for US prosecutors at Atilla’s trial. Zarrab said that Iran, with the help of Halkbank and Turkish government officials including Erdogan, used a complex web of shell companies and sham transactions in gold, food, and medicine to get around US sanctions.

US prosecutors said some officials took bribes as part of the scheme.

The prosecutors are seeking to compel Halkbank to forfeit money and property, though they did not give a specific amount.

Atilla was sentenced to 32 months in prison following his conviction. He was released and returned to Turkey earlier this year. At the time of Atilla’s conviction, Erdogan condemned the case as a political attack on his government.

Gold trader Zarrab, before pleading guilty, hired Rudy Giuliani, a longtime associate of Trump, to try to negotiate a deal between the US and Turkish governments to secure his release.

Giuliani has more recently attracted attention as Trump’s personal lawyer. Federal prosecutors are examining Giuliani’s interactions with two men he worked with in Ukraine who were arrested last week on campaign finance charges.

Giuliani also said on Tuesday that he would not cooperate with the Democratic-led US House of Representatives impeachment inquiry into Republican Trump’s efforts to pressure Ukraine to investigate Democratic political rival Joe Biden.

As a result of the US charge, shares of Halkbank fell on Wednesday more than 7% at the opening of trade.

In early trade, the banking index .XBANK dropped 3.21%, and the main share index BIST100 .XU100 was down 1.93%. Turkish authorities banned short-selling of seven large banks' stocks.



Foreign Start-ups Double in Saudi Market

Saudi Arabia’s LEAP conference becomes top magnet for tech start-ups
Saudi Arabia’s LEAP conference becomes top magnet for tech start-ups
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Foreign Start-ups Double in Saudi Market

Saudi Arabia’s LEAP conference becomes top magnet for tech start-ups
Saudi Arabia’s LEAP conference becomes top magnet for tech start-ups

The number of foreign start‑ups holding Saudi Arabia’s “Riyadi” entrepreneurship license has more than doubled to 550 by mid‑2025, up 118 % from the same period a year earlier, the Investment Ministry said.

The Riyadi permit lets overseas founders launch and scale technology and innovation‑focused companies in the kingdom. Officials say the surge reflects a government push to position Saudi Arabia as the Gulf’s start‑up hub by easing market entry and offering flexible regulation.

The General Authority for Small and Medium Enterprises (Monsha’at) has meanwhile issued 364 licenses for business incubators and accelerators, helping international entrepreneurs develop prototypes, find mentors and connect with investors.

Flagship tech gatherings such as Biban and LEAP in Riyadh – along with Saudi delegations to global events including Web Summit, VivaTech and Slush – have burnished the kingdom’s credentials as a magnet for venture capital and talent, the ministry said.

The momentum comes as Riyadh chases the economic‑diversification goals of its Vision 2030 plan. The government is targeting $100 billion a year in foreign direct investment (FDI) by 2030.

Overall investment licensing jumped 67.7 % last year. In the fourth quarter of 2024 alone, Saudi Arabia issued 4,615 licenses, up 59.9 % year on year.

Net FDI inflows moderated to 16.0 billion riyals ($4.27 billion) in the third quarter of 2024, 24 % lower than a year earlier but 37 % higher than the previous quarter’s 11.7 billion riyals ($3.12 billion), according to General Authority for Statistics data.

Saudi officials say the Riyadi license is integral to diversifying the economy, fostering innovation and embedding an entrepreneurial culture.