Jan 04 2018

Halkbank says complies with regulations; shares rise after U.S. verdict

Turkish state-run Halkbank said it follows international banking regulations and continues to improve its compliance policy.

The bank was reacting to a verdict in New York on Wednesday against its deputy general manager Mehmet Hakan Atillan, who was found guilty of conspiracy and bank fraud in relation to breaking sanctions on Iran. Halkbank said it had not been a party to any crime and Atilla had the right to appeal the verdict.

“The legal case has not yet been concluded,” it said in a statement to the Istanbul Stock Exchange on Thursday. Any news designed to discredit the bank and damage its reputation based on the U.S. jury’s decision would be against Turkish banking laws, it underlined.

“Our bank always adheres sensitively to national and international regulations in all its business and transactions and puts utmost effort to improve its compliance policy further within the framework of international standards,” Halkbank said.

Shares in the company rose 1.6 percent to 11.09 liras at 11:46 a.m. in Istanbul. The main BIST-100 index climbed 0.6 percent.

The Turkish state controls 51 percent of Halkbank via the country's sovereign wealth fund.