Commerzbank will pay $1.45 billion to settle claims that transactions with certain clients ran afoul of U.S. sanctions and money laundering laws.
The German bank will fire employees involved in the alleged violations and install an independent monitor as part of the settlement with U.S. and New York regulators, the New York Department of Financial Services said on Thursday.
Commerzbank has adjusted last year's net profit to $280 million (264 million euro) from the $638 million (602 million euro) it previously reported.
"We take these violations very seriously and deeply regret the actions that led to today's announcements," Commerzbank CEO Martin Blessing said in a statement.
"We have made, and will continue to make, changes to our systems, training and personnel to address the deficiencies identified by U.S. and New York authorities," he continued.