U.S. probes Royal Bank of Scotland for violations of Iran sanctions

PanARMENIAN.Net - The U.S. authorities are investigating Royal Bank of Scotland for possible violations of sanctions with Iran, according to a report in the Financial Times.

Citing several people close to the situation, the FT said that the Federal Reserve and department of justice are conducting the investigation. The investigation comes after the British bank volunteered information to U.S. and UK regulators 18 months ago, the paper said.

Ed Canaday, a spokesman for RBS, declined comment. But in its quarterly report filed on 8 August, RBS said it had "initiated discussions with UK and U.S. authorities to discuss its historical compliance with applicable laws and regulations, including U.S. economic sanctions regulations". The bank said it could not predict the outcome of those discussions.

RBS made a similar disclosure to investors 18 months ago.

A spokesman for the Federal Reserve said it could not "comment on supervisory matters pertaining to individual institutions". A representative at the justice department did not respond to a request for comment.

The report of the investigations into RBS followed last week's $340m (£215m) settlement by Standard Chartered. The British bank had been accused by the New York Department of Financial Services of concealing $250bn in Iranian transactions.

The Financial Times said the New York state agency was not investigating RBS.

In 2010, RBS agreed to pay $500m to settle similar allegations by U.S. federal authorities that ABN Amro, a Dutch bank RBS acquired in 2007, had violated U.S. sanction laws, The Guardian reported.