The potential “strategic partnership” between Deutsche Bank, Germany’s biggest bank, and Sal Oppenheim, the Luxembourg-based private bank, could be endangered due to Iranian state money in deposits of one of Sal Oppenheim’s group companies, media reports suggest.

According to German newsweekly Der Spiegel, the Iranian state money deposited in Frankfurt-based BHF-Bank, said to be in the billions, could compromise the deal between the two firms, as Deutsche Bank recently had to radically decrease the amount of Iranian state money in its accounts, due to pressure from the US Government.

While Deutsche Bank, which is hoping to buy a minority stake of Sal Oppenheim, declined to comment on this issue, a source close to the situation told WealthBriefing that if this were true, it would “not be a deal-breaker”. The Iranian money would not endanger the deal, the source said, as Deutsche showed that it was able to radically reduce the amount of money from Iranian state institutions in its accounts recently.

Last week, this publication reported that Deutsche Bank announced it was in talks to form a “strategic partnership” with Sal Oppenheim.

The German banking giant said it has made a “non-binding offer” for a capital stake in Sal Oppenheim. The size of any stake and the cost of acquiring it were not disclosed. However, a spokesperson told WealthBriefing: "Negotiations are going constructively. The aim is a minority stake [in Sal Oppenheim] for now."

The deal with Deutsche is said to be vital for Sal Oppenheim, as media reports suggest that the private bank needs €300 billion ($426 billion) by the end of August. 

Deutsche aims for a stake between 30 per cent and a little less than 50 per cent, the newswire Reuters quoted a source as having said.