The Second Circuit (partially) clarifies the procedures applicable to prosecution of foreign sovereign owned enterprises.

On October 22, 2021, the United States Court of Appeals for the Second Circuit issued an opinion in United States v. Halkbank, 20 Cr. 3499, directing that a criminal prosecution against sovereign-owned Halkbank for money-laundering and related charges could proceed.  The opinion surveyed several complex issues relating to prosecution of sovereign owned enterprises (SOEs) under the Foreign Sovereign Immunities Act (FSIA).  While it resolved some of these questions, it carefully avoided addressing others; as a result, several questions still lurk in this complex and important area.