RBS Royal Bank of Scotland Group PLC

By Philip Georgiadis

LONDON--Royal Bank of Scotland Group PLC (RBS) said on Wednesday that it has agreed with German prosecutors to pay 23.8 million euros ($25.8 million) to settle an investigation into its Swiss private bank Coutts and Co.

RBS had first flagged the investigation in February and said in its annual report that German prosecutors were investigating Coutts & Co. in Switzerland, as well as some current and former employees, over the alleged aiding and abetting of tax avoidance by certain clients.

An RBS spokeswoman said: "Our Swiss bank, Coutts & Co. has reached a settlement with the German authorities to resolve this matter."

RBS sold the international arm of Coutts to Geneva-based Union Bancaire Privee in March after a long-running attempt to part with the unit, but continues to own the U.K. arm.

RBS is majority-owned by the government, which is in the process of returning it to private hands by selling down the stake it acquired during the financial crisis following a 45.5 billion pound ($68.3 billion) bailout.

The German prosecutor in Dusseldorf couldn't be reached for comment.

Write to Philip Georgiadis at philip.georgiadis@wsj.com

(END) Dow Jones Newswires

December 09, 2015 12:01 ET (17:01 GMT)

Royal Bank of Scotland (NYSE:RBS)
Historical Stock Chart
From Mar 2024 to Apr 2024

Royal Bank of Scotland (NYSE:RBS)
Historical Stock Chart
From Apr 2023 to Apr 2024