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Deutsche Bank Could Pay $390 Million Over Claims It Violated U.S. Sanctions On Iran: Report

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DEUTSCHE BANK IRAN SANCTIONS
HAMBURG, GERMANY - JANUARY 14: Light hits the logo of Deutsche Bank, Germany's biggest commercial bank, at a bank branch on January 14, 2009 in Hamburg, Germany. Deutsche Bank announced today that it is posting a EUR 4.8 billion loss for its fourth quarter, and will likely see a total loss for 2008 of EUR 3.9 billion. on January 14, 2009 in Hamburg, Germany. (Photo by Joern Pollex/Getty Images) | Getty Images
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FRANKFURT, March 24 (Reuters) - Deutsche Bank is bracing for more than 300 million euros ($390 million) in charges linked to suspected violations of U.S. sanctions on Iran, a German weekly reported on Sunday.

Deutsche Bank, Europe's biggest bank by assets, on Wednesday increased its provisions for litigation by 600 million euros to 2.4 billion euros, citing mortgage-related lawsuits and other regulatory investigations.

Without specifying its sources, magazine Der Spiegel said the money set aside could be a sign U.S. investigations of possible Iran-linked transactions had reached an advanced stage.

Deutsche Bank on Wednesday declined to lay out in detail why it had increased provisions. On Sunday, it would not comment on the magazine report.

The U.S. government is cracking down on foreign banks it accuses of undermining its effort to throttle Iran's economy. In the most prominent case, London-based Standard Chartered last year agreed to pay $667 million to settle charges it violated sanctions against Iran and other countries.

Other lenders in the crosshairs of U.S. investigators include Commerzbank, Unicredit division HVB, and HSBC in Britain.

Der Spiegel said that apart from the Iran probe, Deutsche Bank's 2.4-billion-euro legal provisioning included 500 million for a probe of suspected manipulation of interbank lending rates.

Several sources familiar with the investigation told Reuters on Thursday that German markets watchdog Bafin is set to rebuke Deutsche Bank over how it supervised its contribution to the setting of the lending rates.

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