RBS Fined $100m For Breaking US Sanctions
The Royal Bank of Scotland has agreed to pay $100m (£61m) after US investigations into illegal transactions with Iran, Sudan, Burma and Cuba.
The bank has entered into agreements with the US Federal Reserve, the US Treasury Department and the New York State Department of Financial Services.
Earlier on Wednesday it emerged that Lloyds Banking Group has been fined £28m over a new mis-selling scandal.
In a statement, RBS said it "acknowledges and deeply regrets" the failings.
The bank also said it has committed almost $490m (£300m) since 2010 to improve its sanctions controls.
Several UK banks have entered into settlements in recent years over continuing financial transactions with Iran despite US laws against them, and for removing information from payments to get them processed.
Former City Minister Lord Myners told Sky's Jeff Randall Live that the breaches made by RBS and other UK banks were an embarrassment.
"It's embarrassing, to put it at its mildest, that the UK seems to be at the heart of so many of these failures," he said.
"It's not good that these problems arise in the UK, and reading this RBS statement it sounds very wilful and intentional.
"What was going on in these banks? How was this allowed to happen?"
Lord Myners said there are likely to be more fines to come for RBS.
"This isn't closure for RBS with the US regulators. This isn't the end of the story ... There's a lot more that's going to come over the next year or so."
RBS said criminal authorities at the US Justice Department and the District Attorney of New York have closed their related investigations and will not bring charges.
From 2005 to 2009, the bank removed references to sanctioned locations from payment messages to US financial institutions, the Treasury Department said.
RBS instructed employees to list the name of the Iranian financial institution rather than its identifying codes on wire transfers, the department said.
This prevented the bank's payment system from automatically including references to Iran in the cover messages sent to US clearing banks.
Lloyds TSB Bank Plc became the first bank to settle in the US, forfeiting $350m (£213m) in 2009.
Others to pay penalties include Credit Suisse, Barclays, Standard Chartered, and ABN Amro, now part of RBS.
:: Watch Sky News live on television, on Sky channel 501, Virgin Media channel 602, Freeview channel 82 and Freesat channel 202.