Compliancex

Royal Bank of Scotland Group Plc, Britain’s biggest taxpayer-owned lender, is being probed by the Federal Reserve and Justice Department over whether it violated sanctions against Iran, two people briefed on the talks said.

The investigation was triggered after the bank disclosed information to the U.S. authorities following a review of the business Chief Executive Officer Stephen Hester started after he joined the Edinburgh-based bank in 2008, said the people, who asked not to be identified because the probe isn’t public. The Financial Times reported the negotiations earlier today.

RBS opened “discussions with U.K. and U.S. authorities to discuss its historical compliance with applicable laws and regulations, including U.S. economic sanctions,” the bank said in an Aug. 3 filing that didn’t mention the regulators or Iran. “Although the group cannot currently determine when the review of its operations will be completed or what the outcome of its discussions with U.K. and U.S. authorities will be, the investigation costs, remediation required or liability incurred could have a material adverse effect.”

Read the full story at Bloomberg.

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