Another major UK bank in the form of Royal Bank of Scotland is being investigated for possible breaches of US sanctions against Iran.

Another major UK bank in the form of Royal Bank of Scotland is being investigated for possible
breaches of US sanctions against Iran, according to the Financial
Times.

The Federal Reserve and Department of Justice are carrying
out the probe, the FT said, citing unnamed sources close to the matter. The
investigation comes after RBS, parent firm to private bank Coutts, volunteered
information to US and UK
regulators 18 months ago, the paper said.

RBS declined to comment on the FT story. However, it pointed out to WealthBriefing that, in its interim report, published in early August, it said it has engaged and will continue to
engage, in discussions with relevant government and regulatory
authorities, including in the UK and US issues including those affecting compliance with
applicable anti-bribery, anti-money laundering and sanctions regimes.

The FT said a spokesperson 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.

US
authorities have been examining the actions of several foreign banks. Last
week, UK-listed Standard Chartered, which earns the bulk of its revenues
outside the UK, agreed to
pay a $340 million settlement with US
authorities relating to Iran
transactions. Meanwhile, HSBC, Europe's largest bank, has estimated that it faces fines of $700 million
stemming from anti-money laundering failings that have been exposed by a
US investigation.

In 2010, RBS agreed to pay $500 million to settle similar
allegations by US federal
authorities that ABN Amro, which RBS acquired in 2007, had violated US sanction
laws.

In its interim results statement issued on 3 August, RBS had incurred a £8.75 million fine imposed by the FSA during the first quarter
of this year. (The fine was slapped on the bank for failing to take reasonable
care to establish and maintain effective anti-money laundering systems and
controls relating to high-risk customers, including “politically exposed
persons”.)