Stop press: FCA says insurance brokers not managing bribery

The FCA has said commercial insurance intermediaries are failing to manage bribery and corruption risk effectively.

Following a review the City watchdog found half of the third party and client files reviewed were inadequate and senior management oversight was often weak.

There was also found to be weak vetting of staff compared with other financial services and very weak due diligence on third party relationships and payments.

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In a seperate review the FCA found “significant and widespread” weaknesses in most banks’ anti-money laundering systems and controls, and in some banks’ sanctions controls.

Tracey McDermott, FCA director of enforcement and financial crime, said:“Firms must take their responsibility to reduce the risk of financial crime seriously.

“Significant improvements are still required in this area.”