US arrests Turkish banker on charges of violating Iran sanctions

 29 Mar 2017 - 13:42

US arrests Turkish banker on charges of violating Iran sanctions

AFP

Ankara: The US has arrested a senior official at a state-owned Turkish bank on charges of helping Iran violate US sanctions, a move that could fuel tension ahead of Secretary of State Rex Tillerson's visit on Thursday.

Halkbank's Mehmet Hakan Atilla is accused of helping to process millions of dollars of illegal transactions through US banks for the Iranian government and other Iranian institutions, the state-run Anadolu news agency reported.

"Our deputy general manager in charge of international banking, Mehmet Hakan Atilla, was taken into custody in the United States where he was for business purposes on March 28," the bank said, adding that it was working with the authorities.

Confirmation of the arrest hit the bank's shares hard Wednesday morning, sending them down 14 percent to 10.36 lira ($2.84; 2.63 euros) at 0905 GMT.

Anadolu said Atilla was accused of two crimes when he appeared before a judge in New York on Tuesday: conspiring to violate US sanctions against Iran and banking fraud.

It said Atilla faced up to 50 years in prison.

The arrest came as Tillerson is to meet with Turkish President Recep Tayyip Erdogan as well as Foreign Minister Mevlut Cavusoglu in Ankara on Thursday.

In an interview with state broadcaster TRT Haber, Cavusoglu said that the case would be discussed during Tillerson's visit and that Turkey was following the case closely, through both its embassy in Washington and consulate in New York. 

"We will ask (Tillerson) what this issue is about. We will bring to the agenda our worries," Cavusoglu said.

He said they would also discuss the Syria conflict, now in its seventh year, and the requested extradition of US-based preacher Fethullah Gulen, whom Ankara accuses of ordering a failed coup last year.

Gulen has denied the charges, but Ankara has repeatedly called on Washington to return him to Turkey.

- Links to detained executive? -

Atilla is accused of working with Reza Zarrab, an Iranian-Turkish businessman, and others to let the Iranian government and other Iranian institutions get around US sanctions.

Zarrab, 33, was arrested in Miami in March last year en route to Disney World on charges that could see him sentenced to up to 30 years in prison.

His arrest stunned Turkey, where Zarrab had been linked to a 2013 corruption scandal that had ensnared the government at a time when Erdogan was prime minister.

The scandal broke on December 17, 2013, when the sons of former Turkish ministers were detained by police, as well as pro-government figures including Suleyman Aslan, then the CEO of Halkbank. All were subsequently released.

Zarrab had spent 70 days in custody in Turkey over the scandal, which Erdogan denounced as a plot by Gulen to bring down his government.

The American charges against Zarrab include conspiring to violate US sanctions against Iran, defraud US banks and launder money by helping Iranian entities transfer funds through US institutions.

Atilla is to appear again in court on April 10, Anadolu said, adding that he would remain in jail.