German lender Commerzbank is set to pay $1.45bn as penalty to US authorities to settle a probe for violating economic sanctions and for money laundering charges.
The bank is being probed by US authorities including the US Department of Justice, New York’s Department of Financial Services (DFS) and the New York county district attorney regarding economic sanctions for business dealings with Iran, Sudan and other countries on the US sanctions list.
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Separately, the US Attorney’s office in Manhattan, as well as DFS, is also carrying out a probe into Commerzbank’s money laundering risk controls regarding an accounting scandal at Olympus in Japan.
The bank’s ex-head of anti-money laundering compliance for New York branch has already resigned following the investigation.
The bank has also been directed by DFS to dismiss four other employees accused for their association in the wrongdoings. They include a relationship manager, a staff member in the interest and currency unit, and two employees in the cash management department.
"When there was profit to be made, Commerzbank turned a blind eye to its anti-money laundering compliance responsibilities," DFS head Benjamin Lawsky said.
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By GlobalData
