Royal Bank of Scotland will this week be asked to fork out an eight-figure fine for its 2012 IT failures, according to reports.
It has been expected that the Financial Conduct Authority (FCA) would issue RBS with a fine worth tens of millions of pounds over the bank’s technical failures in June 2012.
Seven million customers were unable to access their accounts for a number of days due to a failed software update.
The Observer today alleged that RBS would be forced to pay up next week, after being warned of an impending fine by the FCA last month.
That would mark consecutive weeks in which the bank has had been hit with a reputation-damaging fine, following the £217m paid to the FCA and the $290m to the US Commodity Futures Trading Commission (£407m in total) for “failing to control business practices” in its foreign exchange trading.
While the fine for its IT failures may not be as hefty, it is still expected to a record for IT failures.
Following the technical collapse, RBS set aside £175m to compensate customers.
The bank was also hit with a £14.5m fine for “serious failings” in the way it advised customers about mortgage loans.
RBS declined to comment when contacted by City AM.