Royal Bank of Scotland has reached a settlement with the Board of Governors of the Federal Reserve System, the New York State Department of Financial Services (DFS), and the Office of Foreign Assets Control (OFAC) regarding RBS plc’s historical compliance with US economic sanction regulations outside the United States.

The settlement arises from an investigation initiated by RBS plc in 2010 into its historical US dollar payment practices and controls in the UK.

RBS will pay $100 million (£62 million) in total, with $50 million (£31 million) to the Fed, of which $33 million (£20 million) is deemed to satisfy the OFAC penalty, and $50 million (£31 million) to DFS.

RBS says it has committed almost £300 million since 2010 to strengthen the bank’s control environment on sanctions.