The market regulatory agency claimed that the lender failed to properly report 44.8 million transactions between November 2007 and February 2013, and it did not report 804,000 transactions between November 2007 and February 2012.
Representing 37% of applicable transactions executed by RBS during this period, the reported failures are violation of FCA rules on transaction reporting and its requirements for firms.
The watchdog said that the persisted problem increased following the acquisition of ABN Amro Bank in October 2007, and the bank failed to implement adequate systems and controls to deal with these shortcomings, despite having considerable resources.
The FCA enforcement and financial crime director Tracey McDermott said that effective market surveillance relays on perfect and timely reporting of transactions.
Besides imposing financial penalty, firms can expect to incur the cost of resubmitting historically incorrect reports and the watchdog will continue to take appropriate action against any firm that fails to meet its requirements, McDermott added.
RBS, which is 80% owned by the UK’s government, agreed to settle the case at an early stage of the investigation, and entitled a 30% reduction of their fine.
