Ulster Bank fraud probe

Ulster Bank is confident that an extension of a probe into alleged fraudulent activity by its parent, RBS — to cover its Irish operations — will find it innocent of any wrongdoing.

No timeframe has been put forward for the likely completion of the independent probe &into allegations Ulster Bank may have profited from bankrupting viable business customers.

However, the bank has said it refutes any allegations of fraud, adding that no evidence exists to alter that view.

Earlier this week, British law firm, Clifford Chance concluded a near five-month investigation relating to RBS’s activities in the UK and Northern Ireland and found no evidence to suggest the banking group had been effectively finishing corporate clients by unfairly categorising them as distressed loanees and profiting from charging extrainterest and fees.

The issue stems from English businessman, Lawrence Tomlinson alleging such practices at RBS, late last year, to the UK government’s business secretary, Vince Cable.

Law firm Mason, Hayes & Curran has been taken on to extend the probe into RBS’s operations here, as run by Ulster Bank.

Businessman Bill Cullen is one corporate customer who has gone on record, in recent months, suggesting that his companies ended up paying more to Ulster than was necessary.

Ulster Bank’s management has welcomed the Clifford Chance report and has said the bank has nothing to fear from the Mason, Hayes & Curran extension.

“The review commissioned by RBS in the Republic of Ireland will examine the same allegations and I will report back on its findings,” stated Ulster Bank chief executive Jim Brown.

“We strongly refute the accusations put forward in the Tomlinson report, that we have systematically defrauded businesses and would note that no evidence of such has been provided to the bank,” he added.