RBS given 60 days to get US unit in order

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The Independent Online

The US Federal Reserve has ordered the Royal Bank of Scotland Group to develop a plan for improving oversight of its US operations and tightening its risk-management practices.

RBS has 60 days to submit a written plan of how it will "strengthen board and senior management oversight of the corporate governance, management, risk management and operations" of the bank.

It must also demonstrate that it will tighten up risk management and comply with requirements set by the Treasury Department's Office of Foreign Assets Control, which monitors potential money laundering activities.

The British bank said it was already tackling the issue. "We set and expect higher standards than those that resulted in this Order." its chief executive, Stephen Hester, said.

"RBS is well advanced in addressing the deficiencies noted by the US banking authorities and in continuing to upgrade our governance and compliance systems throughout the group."