FSA warns City over failure on bribery control

A NUMBER of City firms face fines from the Financial Services Authority (FSA) for failing to sufficiently tighten their safeguards against bribery and corruption.

The regulator yesterday warned that nearly half of the banks it visited failed to mitigate their risks adequately and it is considering further action against “certain firms”.

It carried out spot checks on 15 institutions, including eight global investment banks, following last year’s introduction of the Bribery Act, which included an offence of failure to prevent bribery.

Tracey McDermott, acting director of enforcement and financial crime, said: “It is imperative that firms have adequate arrangements to control the risks of financial crime… The investment banking sector has been too slow and too reactive in managing bribery and corruption risks.”

Only two firms visited had either started or carried out specific anti-bribery and corruption audits.