A U.S. federal judge in Manhattan officially dismissed the nine-year criminal indictment against Türkiye’s state-owned lender, Halkbank. This resolution follows the bank's successful completion of a 90-day compliance review period mandated by a March 2026 deferred prosecution agreement (DPA), during which an independent audit by Ernst & Young confirmed no evidence of non-compliance. By concluding the case without any admission of criminal wrongdoing or the imposition of judicial fines, the settlement removes a major diplomatic friction point, marking a significant normalization step in U.S.-Türkiye bilateral relations. Key Takeaways: Permanent Closure: The dismissal order signed by U.S. District Judge Richard Berman formally ends the 2019 criminal proceedings regarding alleged sanctions evasion. Verified Compliance: The bank passed a rigorous, court-mandated independent audit, confirming the effectiveness of its current sanctions and anti-money laundering (AML) controls. No Financial Penalties: The agreement, which required no admission of guilt, concludes without judicial fines, though it mandates that the bank continue to strictly adhere to anti-Iran transaction prohibitions and cooperate with ongoing compliance monitoring. Diplomatic Thaw: The resolution of this long-standing legal battle is widely regarded as a pivotal development in easing tensions between Washington and Ankara.