FRANKFURT (Reuters) - The U.S. Federal Reserve is investigating Deutsche Bank's role in a money laundering scheme that has embroiled both it and Denmark's Danske Bank, Bloomberg reported on Wednesday.

Bloomberg, citing unnamed people familiar with the matter, said that the Fed's investigation was at an early stage.

The U.S. central bank is investigating whether Deutsche Bank in New York properly monitored the transfer of funds it performed on behalf of Danske from its Estonia branch, the report added.

Deutsche Bank declined to comment.

(Reporting by Tom Sims and Andreas Framke; editing by Jason Neely)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)