Appeal hearing of case against Halkbank held in New York

By Sevgi Ceren Gokkoyun

NEW YORK (AA) - The appeal hearing for Turkish lender Halkbank, which has claimed immunity from jurisdiction under the Foreign Sovereign Immunities Act (FSIA), took place Wednesday in New York.

The US Court of Appeals for the Second Circuit presided over the hearing, with Judge Jose Cabranes participating via video conference. Other judges on the panel included Amalya Kearse and Joseph Bianco, along with legal representatives from the US Attorney's Office of the Southern District of New York and Halkbank.

During the hearing, both parties were given the opportunity to present their arguments orally to the court panel.

Prosecutors argued that Halkbank did not qualify for jurisdictional immunity under the FSIA. Conversely, Halkbank's legal team contended that the bank's activities were conducted within Türkiye, asserting that customary law dictates accusations should not be lodged against a foreign state-owned entity.

Questions regarding their respective claims and defenses were fielded by both parties.

The court panel said the decision would be disclosed at a later date.

The Supreme Court, in a ruling last April, determined that the Foreign Sovereign Immunities Act does not extend to criminal law cases. However, it directed the Court of Appeals for the Second Circuit to reassess Halkbank's objection in line with common law principles.

If the Court of Appeals accepts Halkbank's appeal request, the case will be closed. If the court decides against Halkbank, the bank's trial will continue in the Southern District Court of New York.

*Writing by Servet Gunerigok