Deutsche Bank AG (NYSE: DB), Germany's largest bank, is being investigated by U.S. officials over ties to Iran and Sudan, the New York Times reported.
Frankfurt-based Deutsche Bank is accused, along with three other European banks, of laundering money for Iranian firms prior to 2008, using a sanctions loophole that allowed them to transfer funds through U.S. subsidiaries. A spokeswoman for the Deutsche Bank told the Times that the it had rejected business with Iran, Syria, Sudan and North Korea in 2007.
The inquiry, which is still in its early stages, comes in the wake of New York state settling with Britain's Standard Chartered Plc (London: STAN) for $340 million over similar ties, a move that took place without federal involvement. The lack of coordination has caused concerns, and federal officials are debating how involved New York officials, led by regulator Benjamin Lawsky, should be, reported the Times.
In June, ING Group NV (NYSE: INV) settled with regulators for $619 million under similar charges. Barclays Plc (London: BARC), Credit Suisse Group AG (NYSE: CS), Lloyds Banking Group Plc (London: LLOY) and ABN Amro Bank NV were also tied to foreign groups since 2009.
Detsche Bank shares closed up 91 cents to $32.92 on Friday.