Reza Zarrab, the wealthy Turkish-Iranian entrepreneur who allegedly masterminded an extensive conspiracy to help Iran evade US sanctions will not stand trial in New York this week as scheduled, even though the case is proceeding against a co-defendant, it was announced on November 27.

As jury selection got under way, Judge Richard Berman reportedly said Mehmet Hakan Atilla, who served as deputy chief executive of state-owned Halkbank, “is the only defendant in this trial”. Berman gave no explanation for Zarrab's absence from the trial after a series of unexplained no-shows at pre-trial hearings, thus driving speculation that he has cut a deal to appear as a witness for the prosecution.

His name was included on a list of people who may be called as witnesses or mentioned during the proceedings, NBC reported on November 27.

Zarrab, said by some observers to have been close to the family of Turkish President Recep Tayyip Erdogan, was arrested in March 2016 in Miami on charges of conspiring to evade sanctions against Iran, money laundering and bank fraud. Atilla was arrested in March last year. US prosecutors also charged former Turkish economy minister Zafer Caglayan.

The trial will begin on November 28, and is expected to last three to four weeks, Turkish newspaper Hurriyet reported.

Ankara claims the case amounts to a plot against Turkey and suggests that self-exiled Fethullah Gulen, who lives in rural Pennsylvania and whom the government holds responsible for last year’s failed coup attempt, is involved in this conspiracy.

“The US is putting pressure on those involved in the case to testify against Turkey and threaten Turkish interests. Those who were suspects are now witnesses. This is a human rights violation,” PM Binali Yildirim said on November 23, Hurriyet Daily News reported.

“Turkey and the US are two allies. So, lawyers should do their job and politicians should do theirs. Let’s never allow lawyers to harm relations between the two countries,” he reportedly added.

The case against Zarrab is based on fabricated evidence provided by FETO that has infiltrated US state institutions, the judiciary and overseas missions, Foreign Minister Mevlut Cavusoglu said on November 17.

FETO refers to what the Ankara government calls the “Fetullah Terrorist Organisation”.

The trial has also prompted speculation that Turkish banks could be exposed to big fines if guilty verdicts are passed.

Turkish newspaper Haberturk claimed on October 21 that six Turkish banks could face heavy fines over alleged violations of Iran sanctions. However, both Turkey’s banking regulator BDDK and the Capital Markets Board dismissed the report as “baseless and [made up of] rumours” and said they would take legal action. The report later disappeared from the publication's website.

Deputy PM Mehmet Simsek, refuted claims that US officials are probing several Turkish banks for violating American sanctions applied to Iran.

“There are no probes into any Turkish lender. A number of questions have been raised about only one Turkish bank right now. Other than this, there is no process regarding the Turkish banking system. Unfortunately, such bad speculations against Turkey does not work but it does affect the Turkish lira,” Simsek said on November 17.

In October, US Treasury Secretary Steven Mnuchin also dispelled rumours of action against Turkish banks over Iran sanctions.

“Turkey is not the focus right now. There is no truth to those rumours,” Mnuchin said at that time.