trending Market Intelligence /marketintelligence/en/news-insights/trending/Y7dBfDKlCAlztti5BLWS4Q2 content esgSubNav
In This List

RBS to repay £40M to victims of forex transfer fraud

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


RBS to repay £40M to victims of forex transfer fraud

Royal Bank of Scotland Group PLC is set to pay out £40 million to thousands of customers who were victimized by fraud on foreign money transfers for four years, according to The Daily Telegraph.

The bank is set to compensate some 730,000 clients who had been charged higher fees after foreign exchange employees manipulated rates, according to the Dec. 12 report. The employees allegedly modified the bank's system such that 0.06% was added to the rate applied to more than 10 million payments between 2010 and 2014.

The bank did not profit directly from the rate-rigging but the scheme would have led to higher bonuses for the employees due to the performance of their department, the report noted.

Affected clients will get a refund for the added rate plus an 8% interest. Meanwhile, the employees responsible for the fraud, who were fewer than 10, had all resigned before the matter was discovered.

RBS had previously been embroiled in forex rate-rigging scandals, having paid hundreds of millions in fines. A spokesman for RBS said the bank had put in place additional checks and controls to prevent the misconduct from happening again.