The Financial Conduct Authority (FCA) has fined JLT Specialty Limited (JLTSL) £7,881,700 for a breach in financial crime control failings.
JLTSL was deemed to have failed in its business management, with the FCA also outlining that in one of the findings, JLTSL allowed bribery of over $3 million to take place.
The FCA, between 21 November, 2013 and 6 June, 2017, found that JLTSL paid $12.3 million in commission to JLT Re Colombia, one of its subsidiaries, who in turn paid $10.8 million to a third-party introducer.
The introducer then paid over $3 million to government officials at a state-owned insurer in order to help retain and secure its business for JLTSL and JLT Re Colombia.
Mark Steward, Executive Director of Enforcement and Market Oversight, stated: “Lax controls by JLT Specialty meant, ultimately, that money flowed into the pockets of corrupt officials.
“It is because of risks such as this that we are maintaining our focus on financial businesses’ financial crime systems, taking action where these firms fall short.”
JLTSL is a UK-based insurance broker provider and insurance claims service, a part of the wider JLT Group plc. Having a number of subsidiaries across the globe, JLTSL placed business in the London reinsurance market for JLT Re Colombia. The business had been introduced by a third-party based out of Panama.
The FCA stated that it considered JLTSL’s self-report in June 2017 during the investigation, including providing investigators with access to materials from JLT Group’s internal investigation, finding mitigating factors when determining the appropriate level of the financial penalty.
JLTSL did, however, agree to a settlement early into the investigation, which as a result, qualified for a 30% reduction of the original penalty of £11,259,00, to £7,881,700.
The FCA imposed a fine upon JLTSL of £1,876,000 in December 2013 over similar charges of risk control failures around overseas introducers, bribery and corruption.