FSA rails against anti-bribery weakness
A new report by the FSA reveals weaknesses in anti-bribery and corruption controls within insurance brokers, according to Mark Dunn, Risk Market Planning Manager at LexisNexis.
Dunn went on to say that the report comes a timely reminder, given the recent Bribery Act 2010 and the need for firms to handle their new obligations under the act.
In particular, Dunn highlighted the absence of sufficient systems and controls to make certain that third-party due diligence occurs, and is handled with risk management in mind.
The Bribery Act 2010 introduces the new offence of failure to prevent bribery, and forces firms to reassess their third party agent and contractor exposure, as firms are now accountable if third parties representing them partake in bribery or alternative forms of corruption.
Dunn went on to say that the penalties for such transgressions could include debarment from EU and US procurement lists, with directors facing up to 10 years in jail.
Dunn concluded by stating the Bribery Act 2010 is a wake up call for the industry, and pointed out the FSA had already taken action against two firms in the insurance sector.
Category: Insurance News
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