Royal Bank of Scotland (RBS) will pay $100 million to state and federal regulators to settle allegations that it violated sanctions on doing business with Iran, Sudan, Myanmar and Cuba.

RBS concealed the identities of clients subject to economic sanctions by removing references to relevant people and places from payment messages sent to U.S. banks, a joint investigation by the Treasury Department, the New York State Department of Financial Services and the Federal Reserve found. The violations involved least 3,500 transactions through New York correspondent banks worth approximately $523 million, according to a press release Wednesday from the DFS.

RBS hid details that would identify sanctioned clients with the knowledge of senior employees including the group head of money laundering and the head of global banking services for Europe, Middle East and Africa, according to the DFS. Those two employees and others were dismissed as a result of the violations, the DFS said.

The $1.85 trillion-asset RBS will pay $50 million to the DFS and an additional $50 million to the Fed in the settlement. A related $33 million settlement with the Treasury Department is satisfied by the Fed penalty.

The Fed also issued a cease-and-desist order requiring RBS and its bank to improve compliance with U.S. economic sanctions.

RBS "deeply regrets these failings," the company said Wednesday.

The news adds to an already tumultuous day for RBS. The company announced earlier Wednesday that its chief financial officer, Nathan Bostock, is resigning after two months on the job.

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