The BBC reports:

BAE Systems made regular payments of hundreds of millions of pounds to Prince Bandar bin Sultan for more than a decade.

The payments were made with the full knowledge of the Ministry of Defence...

The Prince served for 20 years as Saudi ambassador to the US.

Up to £120m a year was sent by BAE from the UK into two Saudi embassy accounts in Washington for more than a decade...

According to Panorama's sources, the payments were written into the arms deal contract in secret annexes, described as "support services".

They were authorised on a quarterly basis by the MoD.

The SFO inquiry into the Al Yamamah deal was stopped in December 2006.

Prime Minister Tony Blair said at the time it had been dropped because of national security concerns.