Staff 'skimming' transfers
RBS pays £40m to customers over foreign currency rigging
RBS: problem discovered five years ago
The Royal Bank of Scotland is paying out £40 million in compensation to 730,000 customers after discovering a group of rogue staff “skimming” cash on foreign money transfers over four years.
Workers on the lender’s foreign exchange desk manipulated the rates applied to overseas transactions between 2010 and 2014 earning RBS tens of millions of pounds in extra profits, according to the Telegraph.
It says one customer will receive £70,000 in redress in what is said to be the first action of its kind. Other large banks are expected to check their own systems for evidence of similar wrongdoing.
The employees responsible are said to have applied an extra charge to more than 10 million foreign exchange payments.
The Telegraph says the bank uncovered the practice five years ago, but is only now paying compensation because of the scale of the problem.
More than 730,000 customers, mainly individuals but also small businesses using RBS, NatWest and NatWest Markets, will receive an average of £53 each.
In 2014, RBS was ordered to pay £217m for its traders’ part in collusion with staff at other banks to manipulate “spot” currency rates.