Importing animation .fbx from UE4 to Blender: Bone offset

Hey everyone!

I have an error that I unfortunately can’t resolve. I have 2 rigged characters which have the same skeleton (let’s call them character1 and character2, just the mesh is different). Character1 has animations and I retargeted some of these animations onto character2, which works fine - see the first image. Now I wanted to modify these animations. For that I exported as an example one animation in UE4 version 4.14 and imported that .fbx file in Blender. When I apply this animation to character2 the arm’s bones have a weird offset - see image2 and image3.

In UE4 I have set the retargeting translation of all bones to skeleton and switching to a different option for all or some of the bones doesn’t work.
I already changed some of the import settings but that didn’t work either.

Do you have any tips or assumptions why that is and how it can be solved?

Thank you very much!