CHICAGO, Aug 18 (Reuters) - U.S. prosecutors are
investigating Deutsche Bank and several other global banks over
business linked to Iran, Sudan and other nations currently under
international sanctions, the New York Times reported on
Saturday.
The U.S. Justice Department and the Manhattan District
Attorney's office are investigating the banks for allegedly
using U.S. branches to move billions of dollars in Iran-linked
transactions, according to the report, citing unnamed law
enforcement officials.
The investigation into Deutsche Bank is at an early stage
and so far there is no suspicion the Germany-based institution
moved money on behalf of Iranian clients through American
operations after 2008, when a policy loophole allowing such
maneuvering closed, the Times reported.
Deutsche Bank decided in 2007 it would "not engage in new
business with counterparties in countries such as Iran, Syria,
Sudan and North Korea and to exit existing business to the
extent legally possible," a spokesman told Reuters on Saturday.
He declined to comment further.
The Manhattan District Attorney's office and U.S. Justice
Department declined to comment. The U.S. Treasury Department did
not immediately respond to a request for comment.
The report of the Deutsche Bank probe came days
after a settlement for $340 million with New York's banking
regulator and Britain's Standard Chartered Plc. The
Manhattan District Attorney and federal authorities have not yet
settled their probes of the bank.
That deal with New York Superintendent of Financial Services
Benjamin Lawsky was done without agreement with the Manhattan
District Attorney's office and federal authorities.
Reuters has learned that Lawsky ignored the entreaties of
federal regulators to drop his own action in favor of a single,
global settlement. Although winning a larger settlement than
many thought possible, others say Lawsky's tactics have
alienated federal officials and could make it tougher for him to
partner with them on future cases.
Since 2009 the Manhattan District Attorney, Treasury
Department, Justice Department and other agencies have entered
into settlements with a handful of foreign banks including
Credit Suisse, Lloyds and most recently ING
, totaling roughly $1.8 billion.
Authorities have said in the past other foreign banks are
under investigation.
