Halkbank says Turkish government working on issue of executive's U.S. detention

Halkbank says Turkish government working on issue of executive's U.S. detention

JANE ROSENBERG

U.S. prosecutors on Tuesday charged Mehmet Hakan Atilla, a deputy general manager at Halkbank, with participating in a multi-year scheme to violate U.S. sanctions against Iran, escalating a case that has added to tensions between the United States and Turkey.

Atilla is accused of conspiring with Turkish-Iranian gold trader Reza Zarrab to conduct hundreds of millions of dollars of illegal transactions through U.S. banks on behalf of Iran's government and other entities in that country.

The lira weakened more than 1 percent against the dollar late on Tuesday after news of the arrest emerged and it stood at 3.6590 at 0553 GMT.

"After the first hearing was held, time was given to the prosecutor's office to prepare an indictment," Halkbank said in a statement.

"Our bank and relevant state bodies are conducting the necessary work on the subject and information will be shared with the public when it is obtained," it added.

The charges expand a case that has drawn criticism from Turkish President Tayyip Erdogan, who has said he believed U.S. authorities had "ulterior motives" in prosecuting Zarrab.

(Writing by Daren Butler; Editing by David Dolan)

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