German lender Commerzbank is reportedly nearing a deal with US regulators to settle allegations relating to its dealings with Iran and other nations under US sanctions.
The Frankfurt-based bank is in talks with the Justice Department, the Federal Reserve, the Manhattan District Attorney’s Office and New York’s Department of Financial Services.
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The bank is expected to pay about $650 million to resolve the probes, Reuters reported citing an unidentified source.
The New York regulator is likely to receive about $300 million, the source said.
The resolution is likely to involve a deferred-prosecution agreement, similar to other settlements involving sanctions violations reached in recent years, according to Bloomberg.
Over a half dozen foreign banks have settled with US authorities over sanctions-related violations in the past five years.
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By GlobalDataIn June this year, French banking major BNP Paribas agreed to pay a record-breaking $8.9 billion over violations of sanctions and related conduct.
