US FINES RBS £62 MILLION FOR BREACHING SANCTIONS AGAINST IRAN – The British public will no doubt be asking again why the taxpayer was forced to bail out the Royal Bank of Scotland (RBS) when it clearly has no moral scruples when it comes to making money.
The US has now fined RBS £62 million for breaching US sanctions against Iran and a number of other sanctioned regimes for more than a decade.
The British taxpayer owned bank last night agreed to settle with the US authorities after US financial investigators uncovered a web of deceit which included concealing financial transactions with clients in Iran, Sudan, Libya and Myanmar (Burma).
According to the records uncovered by the US authorities employees in the UK where provided with guides that gave them step-by-step instructions on how to conceal these transactions.
The US authorities report stated that between 2002 and 2011 some 3,500 US dollar transactions took place with a value of more than £320 million filtered through US banks.
US authorities have stated that the £62 million fine will be split between New York State Department of Financial Services, the US Federal Reserve and the British Treasury.
Executives at RBS launched their own internal investigation in 2010 after middle-managers uncovered what appeared to be suspicious bank transactions. As a result four senior RBS employees, including the head of its anti-money laundering division, were summarily dismissed by the bank.
US regulators condemned RBS stating that they were fully away of what they were doing which was backed up with the uncovering of guides on giving employees clear instructions on how to conceal the transactions.
Once again another British bank is fined by US regulators for breaching codes of conduct and indeed RBS joins the likes of HSBC, Barclays and Standard Charter all of whom have breach regulations resulting in each being fined for their conduct.
US regulators condemned the actions of RBS stating that the illegal transactions assisted directly in funding known terrorist organisations including Hezbollah and Hamas; it is also suspected to have part funded Iran’s on-going development of nuclear weapons capability.