By Allan Lengel

The Department of Justice has reached a deal very favorable to Halkbank, Turkey’s state-owned bank, which was accused of helping Iran launder billions of dollars through American financial institutions and dodge sanctions. Reasons for the agreement included Turkey helping broker the release of Israeli hostages in Gaza.

Under the deal filed Monday in federal court in New York, the Justice Department agreed to defer prosecution, with no timetable. The deal, which must be approved by U.S. District Judge Richard Berman in the Southern District of New York, requires Halkbank to work with a third party to review its sanctions and anti-money-laundering compliance.

The resolution essentially dismisses any criminal prosecution and actions taken by the U.S. Office of Foreign Assets Control.

“Various considerations contributed to the resolution of the charges provided by the agreement, including the unique and extraordinary national security and foreign policy considerations,” stated a letter from the U.S. Attorney’s Office to the judge filed in federal court.

It went on to say that Turkey played a role in brokering a ceasefire with Hamas and helping release Israeli hostages.

Turkey President Recep Tayyip Erdoğan had publicly complained about the prosecution, which caused further tensions between Turkey and the U.S.