The deal with CIFAS is supplementary to existing fraud checks carried out by the FSA when individuals or firms apply for regulated status.
CIFAS is a not-for-profit membership association dedicated to the prevention of fraud.
When processing applications for approval, the FSA will now be able to double-check through the CIFAS database whether individuals have committed fraud in the past.
It will also share information with CIFAS if it is given false or inaccurate details by regulated individuals or providers of financial services products.
Bob Ferguson, head of the financial crime and intelligence department at the FSA, said: “The FSA has many partnerships which help it in the fight against financial crime.
“The addition of CIFAS membership will enhance that suite of contacts, thereby helping it to be even more successful in reducing financial crime in the financial services industry.”