Britain's Financial Services Authority on Monday concluded a 3-year investigation by hitting prestigious Coutts with the largest ever fine for a British firm for issues connected to financial crime.  The bank, a part of the nationalized Royal Bank of Scotland, provides banking services to Queen Elizabeth II. FSA Findings and Allegations. The bank with failing to apply rigorous controls when dealing with so-called high-risk customers.  These individuals’ positions in public life make them vulnerable to corruption and create an unacceptable risk that Coutts may have handled proceeds from criminal activities, the authority said in a statement. FSA Sanctions. Coutts agreed to pay nearly £9 million ($14mn) to settle the FSA charges.  By agreeing to settle, Coutts received a 30% reduction in the size of the fine.  Without the settlement, the penalty would have been £12.5 million. In November, British authorities fined Coutts £6.3 million for improperly selling bonds issued by the American insurer A.I.G. The British private bank has been pulling back from international markets.  Last week, the Royal Bank of Canada (RBC) agreed to buy the Latin American, Caribbean and African operations of Coutts, which manage about $2.4 billion of assets. Click on the referenced story: [Dealbook, 3/26/12].