May.11, 2010

Royal Bank of Scotland (RBS) has agreed to pay $500 million to bring an end to a case brought against ABN Amro.

The British bank bought the Dutch money lender in 2007, which was made subject to charges from US regulators that it was involved in money laundering operations.

According to the allegations from the Justice Department, ABN Amro aided governments and individuals facing sanctions that were stopping them from operating in America to bring money into the country.

It was claimed that ANM Amro was helping clients from countries such as Libya and Iran to deposit money in the US.

State attorney Ronald Machen said: "Over the course of a decade, ABN Amro assisted sanctioned countries and entities in evading US laws by facilitating hundreds of millions of US dollar transactions."

Last December, Credit Suisse agreed to pay $536 million in regards to allegations that it helped Iranian companies violate American economic sanctions.