Turkiye Halk Bankasi A.S. v. United States
Issues
Are foreign sovereigns and their instrumentalities immune from criminal prosecutions by the United States?
The Turkish government owns the majority of a bank called Turkiye Halk Bankasi (“Halkbank”), which a grand jury indicted for multiple counts of fraud in 2019. Halkbank, however, argues that it should be immune from any criminal prosecution by the United States because of the Foreign Sovereign Immunities Act (“FSIA”). The FSIA explicitly provides immunity from civil actions for foreign governments and their instrumentalities, but the Supreme Court has never stated whether it also applies to criminal prosecutions. If foreign governments are not granted immunity from criminal prosecution under the FSIA, then, as the United States argues, 18 U.S.C. § 3231 explicitly authorizes district courts to hear the case. The Supreme Court’s decision could affect international relations between countries if they fear criminal prosecution by the United States. It could also impact the United States’ ability to protect its national security from foreign government-owned entities that fund terrorists.
Questions as Framed for the Court by the Parties
Whether U.S. district courts may exercise subject-matter jurisdiction over criminal prosecutions against foreign sovereigns and their instrumentalities under 18 U.S.C. § 3231 and in light of the Foreign Sovereign Immunities Act.
Turkiye Halk Bankasi A.S. (“Halkbank”) is a Turkish commercial bank that is majority-owned by the Turkish government. United States v. Bankasi at 341. In 2019, a grand jury in the United States charged Halkbank with multiple counts of fraud, including laundering proceeds of Iranian oil and gas sales into the U.S. financial system in violation of U.S. sanctions against Iran.
Additional Resources
- Aykan Erdemir, Halkbank’s Supreme Court Appeal Will Delay Iran Sanctions-Evasion Case, The Foundation for Defense of Democracies (Jan. 19, 2022).
- J. Alexander Lawrence & Victor Lopez, United States Supreme Court to Decide the Scope of Federal Courts’ Criminal Jurisdiction Over Foreign Sovereign Defendants, Mondaq (Oct. 14, 2022).
- Jonathan Stempel & Tom Hals, Turkey’s Halkbank Can Be Prosecuted Over Iran Sanction Violations, United States Appeals Court Rules, Reuters (Oct. 22, 2021).