WASHINGTON — The Federal Reserve and Commerzbank have reached an agreement over the German bank's antimoney-laundering controls and testing.

Commerzbank's New York branch didn't have appropriate internal controls and independent testing for its bulk cash transactions business line, according to the agreement reached between the two and announced by the Fed Thursday.

Under the agreement, Commerzbank has 45 days to submit to the Fed "an acceptable plan" for the New York branch to review each currency transaction from Sept. 1, 2010, through June 8, when the agreement was signed, and explain how they are conducting the review.

Commerzbank also has 60 days to submit additional reports to the Fed about suspicious activity monitoring and reporting. The bank must identify each deposit, withdrawal, exchange or other payment or transfer over $10,000 and file, when necessary, currency transaction reports.

Commerzbank must also submit written progress reports to the Fed each month, according to the agreement.

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