Regulation

RBS to pay $100 million to regulators over alleged sanction violations

rbs-logoRBS announced on Wednesday a $100 million settlement with regulatory authorities over allegations of sanctions violations.

The settlement stems from a 2010 investigation of the bank into its own historical U.S. dollar clearing practices and sanctions compliance programs that included transactions and funds transmissions with individuals and entities subject to U.S. economic sanctions on Burma, Cuba and Iran.

In addition to the Federal Reserve, RBS reached settlement with the New York State Department of Financial Services and the Office of Foreign Assets Control. Of the $50 million penalty imposed by the Fed, $30 million will go towards the OFAC penalty, and RBS will pay another $50 million to DFS.

Under the terms of the settlement, RBS is required to improve its OFAC compliance programs, under supervision by the Fed and the U.K.’s Financial Conduct Authority.

RBS said in a statement that it has fully cooperated with U.S. authorities and “deeply regrets these failings.” The company said that, since 2010, the bank has committed more than $413 million towards strengthening its sanctions compliance programs.

The bank said it has also conducted a review of all of its customer relationships, exiting where appropriate, and increased its anti-money laundering and sanctions compliance team by more than 730 employees since June 2011.

Comments are closed.