The industry regulator, the Financial Services Authority has handed out a fine of £750,000 to the Royal Bank of Scotland because of Money Laundering regulations failings.
The Money Laundering regulations make it obligatory to verify the identity of your customer, before carrying out dealings for them.
Most people will have been asked for passports, driving licences and utility bill statements at one time or another. This evidence helps to ensure that you are who you claim to be.
The fine for RBS came about when they realised that prospective customers were not having their identification checked and verified.
The FSA said that if the Royal Bank of Scotland had not found the error on their own and subsequently took rectification measures, the level of the fine could have been a lot higher.