Red tape costs force RBS to shut foreign currency accounts
TENS of thousands of RBS accounts will be closed over the coming months as the bank shuts expensive services used by only a few customers, the lender said yesterday.
It has been writing to the 36,000 holders of foreign currency current accounts – the majority of whom are not actively using the accounts – to inform them they can either transfer their funds to another account or take a cheque.
The catalyst for the change was tougher anti-money laundering rules which made it too expensive to run the service for so few users.
Meanwhile credit ratings agency Moody’s said it has put RBS’ A3 long term rating on review for a downgrade.
It follows revelations that the bank has put aside another £3.1bn to cover PPI compensation and other legal bills. Moody’s fears the bank’s capital position will recover more slowly as a result of the costs.