Even though Iran has rescinded a request to repatriate 300 million euros ($347 million) it has in a Hamburg-based bank, German authorities say financial regulators are still examining the proposed transaction.
Finance Ministry spokesman Steffen Hebestreit said Wednesday financial regulator Bafin is still examining whether regulations on money laundering and terrorism financing were being followed.
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Bafin confirmed the investigation but wouldn't comment further.
The U.S. had been pressuring German authorities to reject Iran's request to transfer the cash from the European-Iranian Trade Bank, over concerns of how it would be used.
Though the request has been dropped, a new one could be made.
Germany's Bundesbank last month changed its conditions allowing it to block transfers unless it receives assurances a transaction doesn't violate financial sanctions or money-laundering rules.