FSA fines RBS £5.6m over risk controls

City A.M. Reporter
THE Financial Services Authority (FSA) fined Royal Bank of Scotland £5.6m for major breaches in its risk controls which could have facilitated terrorist financing.

The FSA said that RBS, which is 83 per cent-owned by the British government, did not have adequate systems and controls in place to prevent breaches of UK financial sanctions.

"By failing to screen relevant customers and payments against Her Majesty's Treasury sanctions list, Royal Bank of Scotland Group left itself open to the risk that it was facilitating terrorist financing," Margaret Cole, FSA director of enforcement and financial crime, said in a statement.

RBS said in a statement that it had acknowledged the FSA's findings and had taken action to strengthen its controls systems.