The filing in a Manhattan federal court on Wednesday marks the end of a contentious prosecution initiated during Donald Trump’s first presidential term. U.S. District Judge Richard Berman had previously paused the proceedings for 90 days, tasking Halkbank with demonstrating strict adherence to compliance protocols. Following a review by Ernst & Young, prosecutors confirmed no areas of noncompliance were identified, prompting the request to drop the case entirely.

Under the terms of the settlement, Halkbank is barred from engaging in transactions that benefit Iran and must continue to utilize a monitor for its anti-money laundering and sanctions efforts. Crucially, the agreement involves no financial penalties, and the bank maintains its plea of not guilty. The resolution removes a significant diplomatic irritant that President Recep Tayyip Erdogan once labeled an unlawful and ugly assault on Turkish state interests.

The case, which once reached the Supreme Court over claims of sovereign immunity, centered on allegations that the bank funneled $20 billion in restricted funds to Iran by disguising oil revenues as food shipments. With the prosecution now effectively abandoned, the outcome underscores a period of warming ties between Washington and Ankara, fulfilling expectations set during high-level meetings between the two leaders last year.