Probe Launched against Commerzbank over Money Laundering Allegations

German banking giant, Commerzbank AG, has been placed in the crosshairs of US monetary authorities, culminating in the launch of a probe for alleged violations of US Money Laundering Money Laundering Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund Read this Term laws.

Commerzbank is the second largest lender in Germany and a bellwether institutional bank, whose business spans fixed income, credit, Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term and other financial services.

As US authorities sharpen their teeth and clamp down on illicit activity, Commerzbank has found itself in the regulatory path for money laundering, tax evasion and sanctions violations.

Earlier this month, US authorities and Commerzbank were slated to reach a settlement for up to $650 million, given the banks unauthorized dealings with Iran and other countries.

Adding fuel to the fire, US regulators are now launching an investigation into the alleged money laundering of Commerzbank’s business. The bank is hardly the first such example in a recent string of regulatory activity – BNP Paribas has had to reconcile nearly $9 billion following the violation of sanctions with Sudan, Myanmar, Cuba and Iran.