Turkish state-owned lender Turkiye Halk Bankasi AS has hired consulting firm Ernst & Young to conduct an independent review of its compliance with U.S. sanctions and anti-money-laundering rules, according to a court filing submitted by the bank’s lawyers.
The review forms part of an agreement with the U.S. Department of Justice to resolve a long-running criminal case brought by federal prosecutors in the United States.
The case centered on allegations that Halkbank helped Iran evade American economic sanctions through financial transactions that moved billions of dollars through the international banking system.
Under the terms of the agreement announced earlier this week, the bank must appoint an external expert to assess its internal controls and compliance procedures related to sanctions enforcement and anti-money-laundering policies.
Ernst & Young will conduct that review, examining whether Halkbank’s systems adequately prevent transactions that could violate U.S. sanctions or facilitate illicit financial activity.
The DOJ prosecution against Halkbank had been closely watched by financial markets and policymakers because the bank is majority-owned by the Turkish government and plays a significant role in the country’s banking sector.
U.S. prosecutors previously alleged the lender participated in schemes designed to move Iranian oil revenue through the global financial system despite sanctions intended to isolate Tehran economically.
By commissioning an independent compliance review, Halkbank aims to strengthen oversight of its internal controls and address concerns raised during the investigation.
The court filing did not provide details on the scope or timeline of the review, but the evaluation is expected to focus on the bank’s sanctions screening, customer due-diligence processes and anti-money-laundering safeguards.