Not to be trusted in the private sector

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From Bloomberg:

British authorities have fined the Royal Bank of Scotland 5.6 million pounds ($8.9 million) for failing to follow rules designed to prevent banks lending to people who are on government ban lists, such as terrorist groups.

The Financial Services Authority said Tuesday that RBS and its subsidiaries failed to properly screen its customers and their transactions during 2008, leading to an "unacceptable risk that RBS could have facilitated transactions involving sanctions targets, including terrorist financing."

The FSA did not find any incidents where that occurred, but said the failings were particularly serious because of the risk involved.

"The involvement of U.K. financial institutions in providing funds, economic resources or financial services to designated persons on the sanctions list undermines the integrity of the U.K.'s financial services sector," said Margaret Cole, the FSA's director of enforcement and financial crime.

Cole said the size of the fine -- the first penalty imposed by the FSA under the 2007 Money Laundering Regulations -- should serve as a warning to other firms to ensure the correct procedures are in place.

And then these guys claim they can be trusted offshore.

No they can’t.

And they’re not yet fit to return to the private sector either.