Deutsche Boerse faces $169 million fine over Iran sanctions

Bloomberg: The U.S. government may fine Deutsche Boerse AG (DB1)’s Clearstream unit $169 million after looking into potential violations of sanctions against Iran. Standard Chartered Plc agreed to pay $327 million in fines in December 2012.
Bloomberg

By Matthew Leising

The U.S. government may fine Deutsche Boerse AG (DB1)’s Clearstream unit $169 million after looking into potential violations of sanctions against Iran.

The amount could be reduced 10 percent if Clearstream settles the allegations with the U.S. Treasury Department’s Office of Foreign Assets Control, according to a statement today from Frankfurt-based Deutsche Boerse.

The U.S. investigation centered on securities transfers within the Clearstream system in 2008, following the company’s decision in 2007 to close Iranian customers’ accounts. The company started talks on a deal with the U.S. Treasury in 2008, the Frankfurt-based exchange said earlier this year.

Standard Chartered Plc agreed to pay $327 million in fines in December 2012, including $132 million to OFAC, after regulators said it violated U.S. sanctions with Iran. The British bank was accused of helping Iran launder about $250 billion in violation of federal laws, keeping false records and handling wire transfers for Iranian clients.

“A settlement with OFAC would not constitute a final determination that a violation has occurred,” Deutsche Boerse said in today’s statement. The exchange operator will now decide whether to settle with U.S. regulators, it said. The fine will be included as a provision in the company’s third-quarter filing.