Tuesday, August 03, 2010

Royal Bank of Scotland and terror finance

From Britain's Financial Services Authority - on a fine it has slapped on the Royal Bank of Scotland Group.

RBSG could have facilitated transactions involving sanctions targets, including terrorist financing.

This sort of thing - entirely lax and negligent procedures for stopping dirty money - is core business for the City of London, day after day.

The Royal Bank of Scotland is, on some measures, the biggest bank in the world, it seems, with a balance sheet whose size exceeds $ 3 trillion - fifteen times the Gross Domestic Product of Scotland (OK, these numbers may be a tad out of date, but the orders of magnitude are right) and revenues of $113 billion last year. And the size of the fine for creating money laundering facilities?

£5.6m, or less than US$9 million. That is, 0.005 percent - about one thirteen-thousandth - of its revenues last year. They must be screaming. And now get this, again from the FSA:

"This is the biggest fine imposed by the FSA to date in pursuit of its financial crime objective."

The City of London, deliberately setting out to be the global epicentre of financial laxity, money laundering and crime. If you want more on this theme, you might look here. Oh, and the response from RBS is, predictably, the usual: "everything's OK now. Problem solved."


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