The Federal Reserve said Wednesday it has terminated an enforcement action it took last year against Dresdner Bank AG, a banking unit recently acquired by Germany's Commerzbank AG (CBK.XE).

In November, while Dresdner was still a unit of German insurance company Allianz SE (AZ), the Fed took action against the company for allegedly violating U.S. federal and state anti-money laundering laws.

Dresdner is a primary dealer, a bank that trades directly with the Federal Reserve and participates in U.S. Treasury securities auctions.

In a cease-and-desist order in November, the Fed said the foreign bank and its New York branch were starting to take steps to correct "certain violations of law and deficiencies relating to the New York branch's compliance with applicable federal and state laws, rules and regulations relating to anti-money laundering."

Still, the bank was directed to oversee a review of its New York branch's corporate governance and business accountability practices and report back to the Fed about actions taken to improve its compliance policies. At the time, a spokesperson of Dresdner Bank responded to the order, saying the bank was already working to meet the terms outlined in the Fed order.

Commerzbank received U.S. Federal Trade Commission approval to buy Dresdner from Allianz last year.

-By Maya Jackson Randall, Dow Jones Newswires; 202-862-9255, maya.jackson-randall@dowjones.com