NEW YORK, Oct 22 (Reuters) - A U.S. appeals court on

Tuesday rejected a request by Turkey's state-owned Halkbank

for immunity from U.S. criminal charges that it

helped Iran evade American sanctions.

The 2nd U.S. Circuit Court of Appeals in Manhattan said it

found no basis in common law for a foreign state-owned

corporation to be absolutely immune from U.S. prosecution for

alleged criminal conduct related to its commercial activities.

Lawyers for Halkbank did not immediately respond to requests

for comment.

U.S. prosecutors had charged Halkbank in 2019 over its

alleged use of money servicers and front companies in Iran,

Turkey and the United Arab Emirates to evade sanctions.

Prosecutors said Halkbank helped Iran secretly transfer $20

billion of restricted funds, converted oil revenue into gold and

cash to benefit Iranian interests, and documented fake food

shipments to justify transfers of oil proceeds.

Halkbank pleaded not guilty to bank fraud, money laundering

and conspiracy. The case became a thorn in U.S.-Turkey

relations, with Turkish President Tayyip Erdogan calling the

U.S. charges an "unlawful, ugly" step.