2013 corruption scandal in Turkey

The 2013 corruption scandal in Turkey refers to a criminal investigation that involves several key people in the Turkish government. All of the 52 people detained on 17 December were connected in various ways with the ruling Justice and Development Party (AKP). Prosecutors accused 14 people – including Suleyman Aslan, the director of state-owned Halkbank, Iranian businessman Reza Zarrab, and several family members of cabinet ministers – of bribery, corruption, fraud, money laundering and gold smuggling.

At the heart of the scandal was an alleged "gas for gold" scheme with Iran involving Aslan, who had US$4.5 million in cash stored in shoeboxes in his home, and Zarrab, who was involved in about US$9.6 billion of gold trading in 2012. Both men were arrested. The scheme worked after officials of the Turkish government found a loophole in U.S. sanctions against Iran that allowed them to get Iranian oil and gas. The Turks exported some US$13 billion of gold to Iran directly, or through the UAE, between March 2012 and July 2013. In return, the Turks received Iranian natural gas and oil. The transaction was carried out through Turkish state-owned bank, Halkbank. In January 2013, the Obama administration decided to close this loophole but instead of immediately charging Halkbank, the U.S. government allowed its gold trading activities to continue until July 2013, because Turkey was an important U.S. ally regarding U.S. policy in the Syrian Civil War, and the U.S. had been working on a nuclear deal with Iran.

Then-Prime Minister Erdoğan (now President of Turkey) was out on a foreign tour of Pakistan when the scandal broke, which analysts believe changed the response of the AK Party or influenced those with the tapes to leak them at a time when Erdoğan was touring a key ally (Pakistan) abroad.

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Wikipedia