RBS fined £50 million

20 November 2014

RBS We wrote about RBS getting fined by the Financial Conduct Authority, speculating that they'd be hit with a £50 million fine.

Well, we weren't far off as regulators have slapped the bank with a fine of £56m after their software malfunction saw millions of customers unable to access their own money in their bank accounts in June 2012.

The fine is actually a twofer, with a £42m penalty coming from our pals at the Financial Conduct Authority and another fine of £14m being served by the folks at the Prudential Regulation Authority.

RBS chairman Sir Philip Hampton said the problems "revealed unacceptable weaknesses in our systems" and that it "caused significant stress for many of our customers," adding: "As I did back then, I again want to apologise to all customers in the UK and Ireland that we let down two and a half years ago."

"Modern banking depends on effective, reliable and resilient IT systems," said Tracey McDermott, director of enforcement and financial crime at the FCA.

"The banks' failures meant millions of customers were unable to carry out the banking transactions which keep businesses and people's everyday lives moving. The problems arose due to failures at many levels within the RBS Group to identify and manage the risks which can flow from disruptive IT incidents and the result was that RBS customers were left exposed to these risks."

The FCA said the fine was down to the problem which saw customers unable to use online banking facilities to get at their accounts. obtain accurate balances from ATMs, make mortgage payments, access money abroad and, on top of all that, RBS Group's banks applied incorrect credit and debit interest to accounts. As well as the aforementioned, some businesses weren't able to pay their staff as a result of this cock-up.

TOPICS:   Banking   Government

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