Three European banks that are part of Italy’s UniCredit group have agreed to pay $1.3 billion to resolve charges by federal and state finance regulators and prosecutors to end an investigation that found they had routed hundreds of millions of dollars involving sanctioned entities in Iran and elsewhere.

Authorities announced Monday that UniCredit SpA, its German subsidiary UniCredit Bank AG and UniCredit Bank Austria have agreed to pay $405 million to the New York State Department of Financial Services, $316 million to the Manhattan District Attorney, $158 million to the Federal Reserve and hundreds of millions more to federal prosecutors and regulators. The banks also agreed to improve their monitoring and compliance efforts.