Germany's Commerzbank paying $1.71B in settlements over sanctions violations with US, NY

Germany's Commerzbank AG is paying $1.71 billion in agreements with U.S. and New York authorities for alleged violations of U.S. sanctions against countries including Iran and lapses in prevention of money laundering.

Commerzbank will avoid criminal prosecution by the U.S. Justice Department and the New York City district attorney's office under the agreements announced Thursday. The bank admits responsibility for the violations and promised to establish strict internal controls.

The total $1.71 billion in fines and forfeiture is close to the landmark $1.9 billion settlement by HSBC, Europe's largest bank, of similar allegations in 2012.

Commerzbank is paying a $79 million fine and forfeiting $563 million in the Justice Department agreement, $258 million to the Treasury Department, $200 million to the Federal Reserve and $610 million to New York state.