Banks| Policies| Dodgy Deals| Campaigns
About us| Blog| Publications| Successes| Contact us| Donate
About BankTrack
Visit us
Organisation
Our team
Our board
Guiding principles
Team up with us
Join our Active Allies list
Our annual reports
Funding and finances
History
BankTrack in the media
Our privacy policy
Donate
2021-02-24 00:00:00
Protect the climate but finance Total?
2021-02-16 00:00:00
Oil and gas financiers are staring down the barrel at $1 trillion in losses: time to rein in support for new pipelines
2021-02-11 00:00:00
Beefing up risk: the exposure of JBS’ financiers to financial, regulatory and reputational risks
2021-01-25 00:00:00
Why should banks support EU mandatory human rights and environmental due diligence?
2020-09-24 12:53:20
Oscislowo open-pit coal mine cancelled
2020-09-08 13:07:41
Strengthened OECD guidance on responsible banking
2020-02-25 10:35:27
JPMorgan Chase Coal and Arctic Policy a step forward but fails to match its climate responsibility as the world’s #1 Fossil Bank
2020-02-18 17:27:23
Civil society groups welcome Royal Bank of Scotland preparing to exit fossil fuels
Connect
2021-03-24 00:00:00
Banking on Climate Chaos 2021
2021-03-22 00:00:00
BankTrack Annual Report 2020
2021-02-01 00:00:00
Banking on Thin Ice
2020-11-30 00:00:00
Soft Commitments, Hard Lessons: an analysis of the Soft Commodities Compact
2020-11-24 00:00:00
"Trust Us, We're Equator Banks": Part II
2020-11-18 00:00:00
Crude Risk: Risks to banks and investors from the East African Crude Oil Pipeline
See all publications
Browse
Home
Banks
Dodgy Deals
Map
Campaigns
About
About BankTrack
Donate
Contact BankTrack
Publications
Victories
Follow Us
News
BankTrack blog
Facebook page
Twitter channel
Home › News
Global Witness applauds RBS penalty over terrorist financing
Start
Banks

By: Global Witness
2010-08-04
London

Contact:

Robert Palmer (+44 (0)20 7492 5860 or +44 (0)7545 645406
Amy Barry +44 (0)7980 664397

 


Share this page:

Global Witness welcomes the decisive action taken by the UK financial regulator, the FSA, which has fined the Royal Bank of Scotland (RBS) £5.6 million for failing to check whether its customers were on the UK terrorist sanctions list. RBS' inability to properly vet its customers highlights concerns about the sort of customers banks are willing to accept. 

Global Witness has repeatedly warned that banks are not doing enough to tackle the flow of dirty money, whether terrorist financing, tax evasion or the proceeds of corruption. Our reports have exposed how major banks including Barclays, Citibank, and Bank of America have helped to fuel corruption in developing countries by doing business with corrupt politicians.

"We're pleased that the FSA has finally found its teeth and moved to punish RBS. We hope that from now on the regulator will come down heavily on any bank that fails to take the fight against money laundering seriously enough," said Robert Palmer, a campaigner with Global Witness.

This is the biggest penalty meted out by the FSA for financial crime failings and the first under the UK's 2007 anti-money laundering regulations. But Global Witness doesn't think it is enough to deter irresponsible behaviour.

"£5.6 million is small change for RBS and it pales in comparison with fines levied elsewhere. For example, Lloyds bank was fined $350 million (£220 million) by the US authorities for breaching American sanctions in relation to Iran," said Palmer.

In its Decision Notice, the FSA criticised RBS for not keeping consistent records of the beneficial owner of its corporate customers (i.e. the person who actually controls and financially benefits from a company). Criminals, terrorists and corrupt politicians can hide their identities and therefore their assets behind corporate ownership secrecy.

Without knowing who actually controls a company it can be impossible for a bank to know who they are dealing with, and to know whether their customer is actually a terrorist or a corrupt politician.  

 

Related banks

NatWest Group United Kingdom

active
Browse
Home
Banks
Dodgy Deals
Map
Campaigns
About
About BankTrack
Donate
Contact BankTrack
Publications
Victories
Follow Us
News
BankTrack blog
Facebook page
Twitter channel
Vismarkt 15
6511 VJ Nijmegen
The Netherlands

Tel: +31 24 324 9220
Contact@banktrack.org
©2016 BankTrack                Webdesign by BankTrack and EASYmind
BankTrack is a registered charity in the Netherlands (ANBI) - RSIN 813874658
Find our privacy policy here

Stay up to date

Sign up now for all BankTrack's news


Make a comment

Your comment will be reviewed, before being posted