13th Dec 2019 07:33
(Alliance News) - The Royal Bank of Scotland Group PLC is set to give back GBP40 million to customers after discovering its foreign exchange desk was skimming cash on money transfers, the Daily Telegraph reported Thursday night.
The newspaper said workers on RBS's foreign exchange desk manipulated the rates applied to overseas transactions between 2010 and 2014 - earning the majority state-owned lender tens of millions of pounds in extra profits.
The employees responsible changed computer systems, which meant 0.06% was added to the rate applied to more than 10 million foreign exchange payments from about 730,000 customers.
That put on an extra 60 pence for every GBP1,000 sent abroad via bank transfer. Debit and credit card payments were unaffected, the paper noted.
According to the Telegraph, RBS discovered the problem in 2014 but is only now getting around to redressing customers due to the scale of the issue. The Telegraph also noted this is the first case of its kind and RBS has voluntarily given back the money but has alerted the UK regulators of the situation.
The employees responsible, thought to be fewer than 10, had all left the bank before their actions were discovered.
https://www.telegraph.co.uk/money/consumer-affairs/rbs-customers-store-40m-payout-foreign-currency-rigging/
By Paul McGowan; [email protected]
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