Suspended senior Scotland Yard officer Ali Dizaei was cleared today of misusing his corporate credit card.
An inquiry by Dorset Chief Constable Martin Baker found no evidence he acted dishonestly or without integrity.
The Independent Police Complaints Commission (IPCC) said he will face no further action or investigation on the matter.
The news followed a meeting of the Metropolitan Police Authority (MPA) at which members agreed no further action should be taken.
Mr Dizaei, 47, was accused of failing to repay money he spent on a police American Express card and not keeping receipts.
It was alleged he spent more than £5,000 on clothes and perfume while on a trip to the United States.
Alfred John, of the Metropolitan Black Police Association, which supports Mr Dizaei, said the officer always maintained the claims were without foundation.
The MPA ordered an external inquiry in June 2008 when the allegations against Mr Dizaei first emerged.
He was caught up in a wider probe examining abuse of the corporate credit card system at Scotland Yard by dozens of officers.
Mr Dizaei remains suspended from duty as he prepares to go on trial early next year over corruption charges linked to a scuffle in a restaurant.
He denies misconduct in a public office and perverting the course of justice. The two-week trial is expected to begin on 12 January.
An IPCC spokesman said: "The Independent Police Complaints Commission's managed investigation into the use of a corporate card by a Metropolitan Police Officer of Acpo rank has now concluded.
"The investigation found no evidence that the officer acted dishonestly or with any lack of integrity.
"The report was submitted to the MPA on 23 October for their consideration and, following the authority's professional standards cases sub-committee yesterday, they recommended that no further action should be taken.
"The IPCC has agreed with this recommendation."
An MPA spokeswoman said: "The MPA can confirm that the investigation in to the expenses of a senior Metropolitan Police officer has concluded.
"The Authority's professional standards cases sub-committee was satisfied that no further action should be taken."
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