RBS fined £5.6m for potentially giving your money to terrorists
The Royal Bank of Scotland have had a fine slapped on them to the tune of £5.6m for failing to ensure that customers and their transactions were not involved in terrorism.
Sounds peculiar, but the Financial Services Authority (FSA) have said that during 2008, RBS and its subsidiaries (Nat West, Coutts & Co. and Ulster Bank) failed to check if customers were on the Treasury's sanctions lists.
As a result, the FSA decided that this resulted in an "unacceptable risk" of RBS facilitating the financing of terrorism.
"The involvement of UK financial institutions in providing funds, economic resources or financial services to designated persons on the sanctions list undermines the integrity of the UK's financial services sector," said Margaret Cole, the FSA's director of enforcement and financial crime, to the Beeb.
"By failing to screen relevant customers and payments against the HM Treasury sanctions list, RBS group left itself open to the risk that it was facilitating terrorist financing."
The FSA also noted that, during this period, the RBS group had handled more foreign payments than any other bank in the UK.
The fine would have been more than the £5.6m it stands at today if the bank had not admitted its failings. If they'd swept it under the rug, it would have been £8m, according to the FSA.
Another day, another tale of a bank acting like a complete wankbag.