The FCS has fined general insurance broker Besso £315,000 for failings in its systems and controls to counter bribery and corruption risks.
The regulator found the firm operated a weak control environment around the sharing of commissions with third parties, which gave rise to an “unacceptable risk” they could be used for corrupt purposes.
The rule breaches occurred between January 2005 and August 2011.
Besso failed to conduct adequate risk assessments and due diligence of third parties before entering into business relationships with them, and failed to adequately review its relationships with third parties.
The FCA also found the firm failed to adequately monitor its staff and maintain adequate records relating to anti-bribery and corruption measures.
FCA director of enforcement and financial crime Tracey McDermott says: “Despite receiving two visits from us, and numerous industry wide warnings, Besso failed to ensure it had proper systems and controls in place to counter the risks of bribery and corruption in their business activities.
“Firms must play their part in preserving the integrity of the UK financial system, including taking all steps necessary to prevent financial crime. Where we find firms failing to do so, we will take action.”