Turkey’s Halkbank facing fines for avoiding US sanctions case

People walk past a branch of Halkbank in Istanbul. Being Turkey’s one of the largest lenders, Halkbank is accused of violating US sanctions against Iran. (AFP)
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Updated 26 January 2020
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Turkey’s Halkbank facing fines for avoiding US sanctions case

  • The bank keeps refusing to show up in New York court and answer charges about violation of Iran sanctions

JEDDAH: Turkey’s state-owned Halkbank has failed to defend itself in court in New York amid charges related to Iranian sanctions.

The non-appearances have increased the penalties the bank could pay for violating US sanctions against Iran between 2012 to 2016.
The suggested fine is $1 million for each day of absence during the first week of noncompliance, increasing to $2 million per day in the following week, with fines reaching $105 million after a month and $1.8 billion after two months.
Halkbank — one of Turkey’s largest lenders — is accused of being involved in a gold-for-oil scheme and transferring $20 billion of restricted Iranian funds through the intermediaries of several senior ministers in the ruling Justice and Development Party.
A court in New York, which last year rejected the bank’s appeal for the case to be dropped, is set to begin hearings about the case on Feb. 25.
Halkbank may also be restricted from acceding to the US financial system and dollar transactions if found guilty of violating sanctions.
The case has been contentious due to the tense relationship between Ankara and Washington.
The bank’s senior executive, Hakan Atilla, was sentenced to 32 months in jail two years ago.
In October 2019, Atilla, former jailed banker and former executive of the bank, was selected to become the CEO of the Istanbul stock exchange.
The European Bank for Reconstruction and Development, the second-biggest shareholder, sold its 10 percent stake in the stock exchange allegedly because of Atilla’s selection.
He was sentenced to prison in the US for helping Iran in evade sanctions in a multibillion-dollar scheme. He was then released and returned to Turkey in July 2019 after serving 28 months behind bars.

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A court in New York, which last year rejected the bank’s appeal for the case to be dropped, is set to begin hearings about the case on Feb. 25.

His appointment came a week after US prosecutors in New York filed fraud and money laundering charges against Halkbank.
Ibrahim Kahveci, a Turkish economist, said the Halkbank case became political because it was used as a stick by Washington during a period of difficult relations.
“If Halkbank faces huge penalties, then the bank can cancel all its SWIFT operations. Foreign investors would avoid the bank and Turkey-based operators would not conduct operations through it. It would lead to short-term fluctuations in the economy,” he told Arab News.
Timothy Ash, an analyst at BlueBay Asset Management, told Arab News that the “US reaction seems to reflect the personal relationship between US President Donald Trump and Turkish President Recep Tayyip Erdogan. For some reason there is a ‘connection’ between the two leaders and Trump keeps blocking any sanctions on Turkey.”
He added: “Perhaps this case might be a little different in that the fine will be levied by the Southern District of New York (SDNY), which might be beyond the control of Trump.”


At least 6 Egyptian women die after vehicle slides off ferry and plunges into Nile River

Updated 4 sec ago
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At least 6 Egyptian women die after vehicle slides off ferry and plunges into Nile River

CAIRO: At least six Egyptian women died Tuesday after a vehicle carrying about two dozen people slid off a ferry and plunged into the Nile River just outside Cairo, authorities said.
The accident, which happened in Monshat el-Kanater town in Giza province, also injured nine other passengers, the Health Ministry said in a statement. Giza is one of three provinces forming Greater Cairo.
The ministry said six of the injured were treated at the site while three others were transferred to hospitals. It didn’t elaborate on their injuries.
Giza provincial Gov. Ahmed Rashed said the microbus was retrieved from the Nile, and rescue efforts were still underway as of midday Tuesday.
The cause of the accident was not immediately clear.
According to the state-owned Akhbar daily, about two dozen passengers, mostly women, were in the vehicle heading to work when the accident occurred.
Ferry, railway and road accidents are common in Egypt mainly because of poor maintenance and lack of regulations. In February, a ferry carrying day laborers sank in the Nile in Giza, killing at least 10 of the 15 people on board.

Syrian first lady Asma Assad has leukemia, presidency says

Updated 21 May 2024
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Syrian first lady Asma Assad has leukemia, presidency says

  • Statement stated that Asma would undergo a special treatment protocol that would require her to isolate

DUBAI: Syria’s first lady, Asma Assad, has been diagnosed with leukemia, the Syrian presidency said on Tuesday, almost five years after she announced she had fully recovered from breast cancer.
The statement said Asma, 48, would undergo a special treatment protocol that would require her to isolate, and that she would step away from public engagements as a result.
In August 2019, Asma said she had fully recovered from breast cancer that she said had been discovered early.
Since Syria plunged into war in 2011, the British-born former investment banker has taken on the public role of leading charity efforts and meeting families of killed soldiers, but has also become hated by the opposition.
She runs the Syria Trust for Development, a large NGO that acts as an umbrella organization for many of the aid and development operations in Syria.
Last year, she accompanied her husband, President Bashar Assad ,on a visit to the United Arab Emirates, her first known official trip abroad with him since 2011. She met Sheikha Fatima bint Mubarak, the Emirati president’s mother, during a trip seen as a public signal of her growing role in public affairs.


Yemen’s Houthis say they downed US drone over Al-Bayda province

Updated 21 May 2024
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Yemen’s Houthis say they downed US drone over Al-Bayda province

  • The Houthis said last Friday they downed another US MQ9 drone over the southeastern province of Maareb

DUBAI: Yemen’s Houthis downed a US MQ9 drone over Al-Bayda province in southern Yemen, the Iran-aligned group’s military spokesperson said in a televised statement on Tuesday.

Yahya Saree said the drone was targeted with a locally made surface-to-air missile and that videos to support the claim would be released.

The Houthis said last Friday they downed another US MQ9 drone over the southeastern province of Maareb.

The group, which controls Yemen’s capital and most populous areas of the Arabian Peninsula state, has attacked international shipping in the Red Sea since November in solidarity with the Palestinians in the war between Israel and Hamas militants, drawing US and British retaliatory strikes since February.


Iranians pay last respects to President Ebrahim Raisi

Updated 21 May 2024
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Iranians pay last respects to President Ebrahim Raisi

  • Mourners set off from a central square in the northwestern city of Tabriz
  • Supreme leader Ayatollah Ali Khamenei declares five days of national mourning

TEHRAN: Tens of thousands of Iranians gathered Tuesday to mourn president Ebrahim Raisi and seven members of his entourage who were killed in a helicopter crash on a fog-shrouded mountainside in the northwest.

Waving Iranian flags and portraits of the late president, mourners set off from a central square in the northwestern city of Tabriz, where Raisi was headed when his helicopter crashed on Sunday.

They walked behind a lorry carrying the coffins of Raisi and his seven aides.

Their helicopter lost communications while it was on its way back to Tabriz after Raisi attended the inauguration of a joint dam project on the Aras river, which forms part of the border with Azerbaijan, in a ceremony with his counterpart Ilham Aliyev.

A massive search and rescue operation was launched on Sunday when two other helicopters flying alongside Raisi’s lost contact with his aircraft in bad weather.

State television announced his death in a report early on Monday, saying “the servant of the Iranian nation, Ayatollah Ebrahim Raisi, has achieved the highest level of martyrdom,” showing pictures of him as a voice recited the Qur’an.

Killed alongside the Iranian president were Foreign Minister Hossein Amir-Abdollahian, provincial officials and members of his security team.

Iran’s armed forces chief of staff Mohammad Bagheri ordered an investigation into the cause of the crash as Iranians in cities nationwide gathered to mourn Raisi and his entourage.

Tens of thousands gathered in the capital’s Valiasr Square on Monday.

Supreme leader Ayatollah Ali Khamenei, who has ultimate authority in Iran, declared five days of national mourning and assigned vice president Mohammad Mokhber, 68, as caretaker president until a presidential election can be held.

State media later announced that the election would will be held on June 28.

Iran’s top nuclear negotiator Ali Bagheri, who served as deputy to Amir-Abdollahian, was named acting foreign minister.

From Tabriz, Raisi’s body will be flown to the Shiite clerical center of Qom on Tuesday before being moved to Tehran that evening.

Processions will be held in in the capital on Wednesday morning before Khamenei leads prayers at a farewell ceremony.

Raisi’s body will then be flown to his home city of Mashhad, in the northeast, where he will be buried on Thursday evening after funeral rites.

Raisi, 63, had been in office since 2021. The ultra-conservative’s time in office saw mass protests, a deepening economic crisis and unprecedented armed exchanges with arch-enemy Israel.

Raisi succeeded the moderate Hassan Rouhani, at a time when the economy was battered by US sanctions imposed over Iran’s nuclear activities.

Condolence messages flooded in from Iran’s allies around the region, including the Syrian government, Palestinian militant group Hamas and Lebanese militant group Hezbollah.

It was an unprecedented Hamas attack on Israel that sparked the devastating war in Gaza, now in its eighth month, and soaring tensions between Israel and the “resistance axis” led by Iran.

Israel’s killing of seven Revolutionary Guards in a drone strike on the Iranian consulate in Damascus on April 1 triggered Iran’s first ever direct attack on Israel, involving hundreds of missiles and drones.

In a speech hours before his death, Raisi underlined Iran’s support for the Palestinians, a centerpiece of its foreign policy since the 1979 Islamic revolution.

Palestinian flags were raised alongside Iranian flags at ceremonies held for the late president.


Israeli army raids West Bank’s Jenin, Palestinians say seven killed

Updated 21 May 2024
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Israeli army raids West Bank’s Jenin, Palestinians say seven killed

  • Among the Palestinians killed was a surgical doctor, the head of the Jenin Governmental Hospital said

JENIN: Israeli forces raided Jenin in the occupied West Bank on Tuesday in an operation that the Palestinian health ministry said killed seven Palestinians, including a doctor, and left nine others wounded.
The army said it was an operation against militants and that a number of Palestinian gunmen were shot. There was no immediate word of any Israeli casualties.
The health ministry account of the casualties was quoted by the official Palestinian news agency WAFA.
Among the Palestinians killed was a surgical doctor, the head of the Jenin Governmental Hospital said. He was killed in the vicinity of the hospital, the director said.
The West Bank is among territories Israel seized in a 1967 Middle East war. The Palestinians want it to be the core of an independent Palestinian state. US-sponsored talks on a two-state solution to the decades-old conflict broke down in 2014.