RBS probed over possible Iran sanctions violations

Thursday, 23 August 2012 00:00 - - {{hitsCtrl.values.hits}}

LONDON, (Reuters): US authorities are investigating Royal Bank of Scotland over possible breaches of sanctions on Iran, as part of a crackdown in which Standard Chartered has already agreed to pay a heavy fine for transactions involving Tehran.

An RBS spokeswoman referred on Wednesday to disclosures alongside the bank’s half-year results earlier this month. These stated that RBS had initiated talks with US and UK authorities on whether it complied with economic sanctions on Iran, and that it could face a material impact from the investigation.

The inquiry raises the possibility of a hefty fine for the part-nationalised British bank, which is also being investigated for its involvement in the Libor rate rigging scandal, and will raise the pressure on Chief Executive Stephen Hester.

Also on Wednesday, Germany’s Die Zeit newspaper reported that Commerzbank expects it may face “considerably negative” consequences from a US investigation into Iran sanctions violations. Citing a Commerzbank securities filing, it said this could include a financial hit that exceeds provisions.

Commerzbank said it had not done business with Iran since 2007 and declined further comment.