Friday, December 13th 2013 - 09:20 UTC

Another UK bank fined for ignoring rules and working with black-listed countries

Royal Bank of Scotland has been fined 100 million dollars by US regulators for violating US sanctions against Iran, Sudan, Burma, and Cuba. The settlement follows from a 2010 internal investigation by RBS into its historical US dollar payment processes and controls. The violations took place between 2005-09, the US Treasury said.
In a statement, RBS said it “acknowledges and deeply regrets these failings”.

In a statement, RBS said it “acknowledges and deeply regrets these failings”.

 RBS found that bank procedures removed location information on payments made to US financial institutions from countries such as Iran and Cuba.

Bank procedures “instructed employees to list the actual name of the Iranian financial institution rather than the Bank Identifier Code in the beneficiary bank field of the payment instructions,” according to regulators. This prevented information about the banks from being included in cover letters and forms sent to US clearing banks.

Those institutions then processed the payments, in violation of US sanctions.

Furthermore, according to the New York Division of Financial Services, RBS employees in the UK “received written instructions containing a step-by-step guide on how to create and route US dollar payment messages involving sanctioned entities through the United States to avoid detection”.

In total, more than 3,500 transactions, totaling approximately 523m dollars were routed through New York banks in violation of US sanctions.

The bank entered into agreements with the Federal Reserve, Treasury Department and New York State Department of Financial Services.

“We will continue to take aggressive action against those who would flout our law,” said Under Secretary for Terrorism and Financial Intelligence David S Cohen.

As part of its investigation, RBS bulked up its compliance workforce by 730 employees since 2011, bringing the total worldwide to 1,700. It also instituted compulsory compliance training for all of its 120,300 employees.

Wednesday's settlement follows others by international banks in recent years. Standard Chartered paid a total of 674m to US regulators in 2012 for violating sanctions against Iran. And HSBC paid a record 1.9bn for laundering money for “drug kingpins and rogue nations”.

5 comments Feed

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1 Escoses Doido (#) Dec 13th, 2013 - 12:45 pm Report abuse
Lol - I bank with both HSBC, and RBS.

Those crooked buggers do provide a good customer service though.......
2 ChrisR (#) Dec 13th, 2013 - 02:50 pm Report abuse
@ 1

It took place in 2005 – 2009 and RBS found the problem themselves in 2010 and reported it to the authorities, hence the fine.

Great heh? You make mistakes, find them, admit to them, fix the system and the Yank “Regulators” FINE THEM FFS!

These same regulators were in place when all the Yank Banks were running like the Red Legs in Tombstone.

I was with NatWest when RBS took them over and things have improved dramatically since.
3 A_Voice (#) Dec 13th, 2013 - 03:23 pm Report abuse
Headline should really read...

....................US Regulators Fine UK Taxpayers 100M...

As 81% of shares are owned by UK Government...taxpayers...
4 GeoffWard2 (#) Dec 13th, 2013 - 06:33 pm Report abuse
I hope the US 'regulators' will be fining the Russians and the Chinese for their violating of US sanctions against Iran, Sudan, Burma, and Cuba.

I believe that the Russians and Chinese should also “acknowledge and deeply regret their failings”. [North Korea has today shown the way of dealing with these backsliders - death by machine gun.]

Perhaps the first move will be for the US 'regulators' to demand that the guilty Russians and Chinese should step forward to receive their just punishment.
I guess, as most of these RU & CH companies are 'state-controlled enterprises', that we should be expecting the head-honchos to step forward ... that would be Putin and Jia Qinglin.

Wow, things are getting interesting!
Those US 'regulators' certainly have big balls!
5 ChrisR (#) Dec 13th, 2013 - 07:24 pm Report abuse
@ 4 GeoffWard2

Especially when they are told what has gone on by the people who have done it!

You really couldn't make this up.

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