RBS handed $100m fine by US regulators

<p>US regulators have handed a $100 million fine to RBS.</p>

Royal Bank of Scotland's (RBS) financial issues have continued, as the bank has been ordered by US regulators to pay a huge fine after it violated sanctions against a number of countries.

RBS was told that it must pay $100 million (£61 million) as a result of sanctions against nations including Iran, Sudan, Burma and Cuba.

An investigation by the US Treasury found that issues arose between 2005 and 2009 and RBS itself has been examining its records on historical US dollar payment processes and controls.

RBS said it "acknowledges and deeply regrets these failings" in a statement, but the bank will still have to pay the hefty fine to regulators in the US.

The fine comes only a day after the Financial Conduct Authority in the UK ordered Lloyds Banking Group to pay a record £28 million fine after an investigation found it had pressured staff members into selling products such as income protection plans to consumers.

RBS admits violating sanctions

RBS accepted that its bank procedures had removed location information on payments that were made made to US financial institutions from countries such as Iran and Cuba, violating sanctions.

"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.

The settlement was announced after a series of talks that were held between RBS, the Federal Reserve, Treasury Department and New York State Department of Financial Services.

Responding to the findings of the investigation, RBS stated that it has initiated compulsory compliance training for all of its 120,300 employees, while it has also added to this department's workforce by 730 employees since 2011, which brings the total worldwide to 1,700.

The share price of RBS is down this morning (December 12th) on the back of the news of the huge fine breaking. By 09:09 GMT, its stocks were 1.16 per cent lower compared to the start of the day.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.