Commerzbank will pay a $1.4bn (£973m) fine to the US authorities, after becoming the latest bank to admit to moving money through the US for countries such as Iran and Sudan.
The bank was also found to have not complied with anti-money laundering laws by New York’s state Department of Financial Services.
Five members of staff, including the former head of compliance for the bank’s New York branch, will be fired or resign. Commerzbank chief executive Martin Blessing said: “We take these violations very seriously and deeply regret the actions that led to today’s announcements.”
The fine come after a probe into an accounting scandal at Japan’s Olympus Corp.