LONDON (ShareCast) - Commerzbank turned a "blind eye" to money laundering and sanction breaches, said US authorities as they announced a $1.45bn settlement with the German lender. Furthermore, employees who tried to flag concerns for the bank's practices were allegedly dismissed as "crying wolf".

The US Department of Justice, New York's Department of Financial Services (NYDFS) and the New York county district attorney are among the authorities investigating Commerzbank for dealings with Iran, Sudan and several other countries on the US sanctions list.\

The investigation has already prompted the resignation of the former head of anti-money laundering compliance for Commerzbank's New York branch. Four other employees have also been accused of central roles in the alleged wrongdoing, with NYDFS ordering the lender to fire them all.

They include a relationship manager, a staff member in the Interest, Currency & Liquidity Management department and two employees in the Cash Management & International Business department.

"When there was profit to be made, Commerzbank turned a blind eye to its anti-money laundering compliance responsibilities," said head of the NYDFS, Benjamin Lawsky.

"What is especially disturbing is that employees sought to alter the Bank's transaction monitoring system so that it would create fewer 'red flag' alerts about potential misconduct, which highlights a potential broader problem in the banking industry," he added.