FSA to focus on firms that use "go-betweens"
Share
The FSA has warned it will pay particular attention to firms that use middle-men in countries known for high levels of corruption, as part of its efforts to counter the risk of bribery and corruption.
Addressing the British Bankers Association today, FSA director of enforcement Margaret Cole said supervisors may look at whether a firm’s geographical reach, customer base, product lines, or sales channels make it vulnerable to the risk that staff pay or receive bribes.
She said: “Firms that use go-betweens to generate new business in jurisdictions associated with systemic levels of corruption may receive particular attention. I would expect firms in this position to be actively implementing measures to mitigate the threat.”
Cole also responded to recent accusations that the FSA has transformed into an “assertive criminal prosecutor”. She insisted the FSA is right to exercise powers as a prosecutor and said the regulator has taken steps to become a heavyweight criminal prosecutor.
Cole said: “The FSA is, of course, a prosecutor with a limited remit, a remit we are very clear about. But there is no reason why this should be seen as a bad thing. There are a number of other specialist prosecutors reflecting the view that it is important to have specialist fraud authorities rather than one jack of all trades.”
If you enjoyed this article, sign up here to receive daily email updates from Money Marketing and Follow @_moneymarketing
Readers' comments (3)
Nikki Turner | 19 Nov 2009 2:18 pm
Does this mean there will be greater levels of control over banks inflicting 'consultants' on their clients businesses? And, great as it is to get all this positive news about the future possibilities the FSA has, is there going to be any pro-active prosecutions or remedies that will help victims of past financial crimes?
I know of many people who wait with baited breath for an important announcement from the FSA regarding the actions of a major bank - but will it ever come?
Unsuitable or offensive? Report this comment
marc blenco | 20 Nov 2009 5:23 am
...more witchfinder general rubbish...listen lady,money is in HSBC in Jersey therefore it is clean...transferred by client to investment company's bank, which is Barclays in IOM..it is clean...client is a French citizen working for a multinational company in Nigeria...his salary is paid from France to his account in Jersey...what would you do with your insane rules?...turn down the business because he works in Nigeria,probably...director of enforcement, indeed! What a completely alarming title!You enforce nothing and protect no-one!
Unsuitable or offensive? Report this comment
Anonymous | 20 Nov 2009 9:46 am
I think the FSA should learn to walk before they run.
Unsuitable or offensive? Report this comment