Commerzbank near to settling U.S. sanctions probes
German lender Commerzbank AG (CBKG.DE) is nearing agreement with U.S. authorities over its dealings with Iran and other countries under U.S. sanctions, sources familiar with the matter said.
The bank is expected to pay about $650 million to resolve the U.S. probes, one person said.
Reuters previously reported Commerzbank, Germany’s second largest lender, was expected to pay U.S. authorities between $600 million and $800 million, including a demand for more than $300 million from New York’s Department of Financial Services, headed by Benjamin Lawsky.
The New York regulator is likely to receive about $300 million, one source said on Wednesday.
Commerzbank knowingly banked for the Islamic Republic of Iran Shipping Lines, one of the sources said.
In the past five years, more than a half dozen foreign banks have settled with U.S. authorities over sanctions-related violations.
French lender BNP Paribas in June agreed to pay a record-breaking $8.9 billion over violations of sanctions and related conduct.
Authorities have said the targeted banks stripped identifying information from incoming wires to avoid red flags that would have helped regulators police the transactions.
Source: Reuters
