FSA fines RBS £5.6 million for UK sanctions control failings

03 August 2010

The Financial Services Authority (FSA) has fined Royal Bank of Scotland Group (RBS) £5.6 million for UK sanctions controls failings. The FSA found RBS did not have adequate systems and controls in place to prevent breaches of UK financial sanctions. UK firms are prohibited from providing financial services to persons on the HM Treasury sanctions list. The Money Laundering Regulations 2007 (the Regulations) require that firms maintain appropriate policies and procedures in order to prevent funds or financial services being made available to those on the list. During 2007, RBS processed the largest volume of foreign payments of any UK financial institution. However, between 15 December 2007 and 31 December 2008, RBS Plc, NatWest, Ulster Bank and Coutts and Co, which are all members of RBS, failed to adequately screen both their customers, and the payments they made and received, against the sanctions list. As RBS agreed to settle at an early stage of the FSA investigation, it qualified for a 30% reduction in penalty from £8 million. Published by CityWire