Royal Bank of Scotland (RBS) has come under fire with the impending global probe on forex manipulation, and now troubles worsen as the firm has been fined £460,000 by Hong Kong regulators due to illegal trading. Regulators state that RBS failed to detail unauthorized trades by one of their traders.
The Hong Kong regulators pointed to a worrisome trend among the world’s largest banking institutions: a lack of control, which were deemed “seriously inadequate.” This has not been the first time a trader has gone rouge. Shirlina Tsang, former RBS trader, was convicted and sentenced to 50 months in prison for falsifying records of emerging market trades.
“We put in place a comprehensive remediation programme that strengthened our governance and supervisory oversight, and our control environment,” according to RBS through a statement. Regulators did commend the bank on its swift action when the problem came to light, and the fine was smaller than what could have been handed down.
This recent fine is only a drop in the bucket. Last December, a settlement of €391 million in penalties in their role in the attempted manipulation of the Yen LIBOR and Euribor interest rates.