Commerzbank fined €1.32bn for violations

Commerzbank and lawyers for the US government gained federal court approval of a $1.45bn (€1.32bn) agreement to defer prosecuting the lender for violating US laws, including sanctions on doing business with Iran and Sudan.

Germany’s second-largest lender will pay penalties to government agencies including the Manhattan District Attorney’s office, Federal Reserve and the Treasury Department.

The Frankfurt-based bank conceded the allegations, which included aiding accounting fraud at Olympus.

The bank and its New York unit must continue reforms of its anti-money laundering compliance programme and co-operate with the government for three years before charges are dropped.

Signed by bank officials and lawyers for both sides last month, the agreement was accepted on Friday by US District Judge Beryl Howell in Washington.

“We take these violations very seriously and deeply regret the actions that led to today’s announcements,” Commerzbank CEO Martin Blessing said on March 12.

The accord did not require the lender to plead guilty.

Bloomberg