RBS ordered to improve governance

risk management practices, reports Guardian.co.uk.

The bailed-out bank has been given 60 days through a cease and desist order to prove it can strengthen board and senior management oversight of the corporate governance, management, risk management and operations.

This comes a year after Britain's Financial Services Authority levied a £5.6 million fine on RBS for failing to adequately screen customers to prevent its banks from being used for money laundering or financing of terrorists, according to The Independent.

BBC News says the order requires the RBS Group to improve compliance with the US Bank Secrecy Act and anti-money laundering requirements at its US branches.

A cease and desist notice has been used by the US Federal Reserve 10 times this year, eight of them to deal with problems in domestic lenders' mortgage servicing.

Last year, there were only three such notices served, including one for Barclays Bank, to ensure it complied with US requirements on international sanctions.