The Royal Bank of Scotland, in which the British government owns 81 percent, was allegedly involved in manipulation of foreign exchange markets and subject to various regulatory investigations along with several other major banks. The Department of Justice in Washington and the Serious Fraud Office in Britain are overseeing separate criminal investigations into these banks and their traders.
Part of the settlement reached by the Financial Conduct Authority of Britain with the Royal Bank of Scotland (“RBS”) requires the bank to help the City of London Police in its work to tackle the most complex and challenging financial crimes facing the UK. This deal is already called a “landmark agreement.”
Earlier this year finance professionals were invited to join City of London Police’s newly formed Economic Crime Directorate Team. This team has developed a great deal of expertise in dealing with fraud and “is recognised as the national policing lead for fraud.” Accordingly, it is no surprise that City of London Police seized the opportunity to seek the Royal Bank of Scotland’s aid to fight complex financial crimes. According to the joint press release of City of London Police and RBS, the police expect to receive beneficial information from the bankers in areas such as equities and markets, financial instruments, international jurisdictions, cyber technology, and foreign languages.
“Entering into this volunteer scheme will give the force access to the type of expertise and advice that will greatly assist our detectives when dealing with the most complex and challenging cases of economic crime, building on the support we already receive from our Special Constabulary and other force volunteers,” said the City of London Police Commissioner Adrian Leppard in his statement.
This deal may be beneficial for bank institutions as well. Several banks have recently been attacked by highly-skilled cyber criminals. One of the most recent cyber attacks was made on JPMorgan Chase. This attack alone compromised the accounts of 76 million households and seven million small businesses.
“Protecting the safety and security of our customers and staff is a top priority as we work towards making RBS the most trusted bank by 2020,” said Emma Smith, Head of Security, Resilience and Control at RBS in her statement. Ms. Smith also underlined that the expertise and experience of the bank’s employees “will help safeguard our customers and others.”
It is too early to say how this cooperation between bankers and City of London Police will work out. But cooperation between the banks and law enforcement seems likely to prove beneficial for both parties, and, ultimately, consumers and the general public.
The Royal Bank of Scotland Will Help British Police Tackle Complex Financial Crimes (PDF)