The Royal Bank of Scotland (RBS) has agreed to pay US regulators $100m (£61m) following allegations that the bank violated sanctions against Iran, Burma, Cuba and Sudan.
The settlement has been agreed with the US Federal Reserve, the US Treasury and the New York State Department of Financial Services. According to the US Treasury, RBS engaged in payment practices that interfered with the implementation of US economic sanctions by financial institutions in the US between 2005 and 2009.
“With respect to Iran, for example, RBS accomplished this by developing written procedures to send payments that omitted information about the Iranian nexus in cover payments sent to US financial institutions”, the US Treasury explained.
“The procedure 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.”
Using this method meant that the RBS payment system was prevented from automatically including references to the Iranian bank or Iran in related cover messages. This resulted in the omission of data from instructions sent to US clearing banks. Similar methods were used for payments involving Sudan, Burma and Cuba.
In addition, RBS employees in the UK are said to have received written instructions on how to create and route US dollar payment messages involving sanctioned entities through the US to avoid detection.
In a statement RBS said it “acknowledges and deeply regrets these failings”.
Adam Szubin, director of the US Treasury’s Office of Foreign Assets Control, said, “This action demonstrates our continuing efforts to aggressively enforce US sanction laws against Iran and other sanctioned parties.”
He added the move also underscored that the US regulatory community will ensure that the US financial system is protected from the risks associated with this type of “illicit financial behaviour”.
This year alone RBS has faced a number of fines for poor practices. The bank was fined £390m for its part in the Libor fixing scandal and is currently being investigated, but has yet to be fined, by the EU over allegations they rigged interest rates.
The banking regulator also fined RBS £5.6m in July for inaccurate transaction reporting. According to the outgoing chairman of UK Financial Investments in November, RBS could be implicated in another scandal relating to the US sub-prime mortgage crisis.
It was announced on Wednesday that Lloyds Banking Group was dealt a record £28m for “serious failings” in its control of sales incentives schemes and as a result encouraging an irresponsible sales culture.
Like our Facebook Page
How to Find an Eco-Friendly Termite Control Service Provider in Malaysia
Eco-Friendly Vegans Win Most Battles Not the War
3 Iconic Chicago Billboards Eco-Friendly Advertisers Can Learn from
EnviroSolar’s Abe Issa Discusses Success in Green Entrepreneurship
How Sports Could Be Impacted by Climate Change
What Eco-Friendly Patients Should Know about Online Therapy
6 Reasons Why Meal Delivery Services are Eco-Friendly
The Path for Retail’s Sustainable Future
4 Eco-Friendly Ways to Treat a Sinus Infection
4 Strategies for Eco-Friendly Real Estate Investors to Find Properties
How Managed Print Services Helps to Reduce Paper Waste
Why Scientists Are Concerned About ‘Forever Chemicals’ In Drinking Water
Meat Farming Is Only Getting Smarter, Easier & Eco-Friendlier
What is Eco-Friendly Homesteading and How Does it Affect Your Insurance?
Importance of Using a Water Purifier in an Area with High Pollution
Alternative Financing Ideas for Green Businesses that Shun Banks
Tencel Material Demand Shows Britain Is More Eco-Friendlier Than Ireland
How To Invest in Clean Energy Stocks in Only Five Easy Steps!
How To Secure Funding As An Eco-Entrepreneur?
4 Amazing Eco-Friendly Businesses Worth Starting in 2021
- Features8 months ago
Seven Health and Safety Tips for Eco-Friendly Products in a Green Home
- Energy9 months ago
Eco-Friendly Homeowners Lower Carbon Footprints through Greater Air Conditioner Efficiency
- Features8 months ago
Essential Guidelines for Eco-friendly Moving into new Home
- Invest10 months ago
The Eco-Friendly Evolution of Bitcoin Over the Years