Federal authorities in the US are investigating Royal Bank of Scotland for possible breaches of Iran sanctions in a probe that has already led to the departure of a senior risk manager.
The UK bank is being probed by the Federal Reserve and Department of Justice after volunteering information to them and UK regulators about 18 months ago, several people close to the situation said.
The bank uncovered the alleged failings after chief executive Stephen Hester initiated an internal review not long after his arrival three years ago.
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