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Financial Conduct Authority, JLT Specialty Ltd
The Financial Conduct Authority (FCA) has fined JLT Specialty Ltd £7.88 million ($9.66 million) for financial crime control failings, which in one instance allowed bribery of over $3 million to take place.

UK-based JLTSL provided insurance broking, risk management and insurance claims services. It was part of JLT Group plc, which had several subsidiaries around the world.
JLTSL placed business in the London reinsurance market for JLT Re Colombia, another company in the JLT group. The business had been introduced by a third-party based in Panama, the FCA said in a statement yesterday.

Between 21 November 2013 and 6 June 2017, JLTSL paid $12.3 million in commission to JLT Colombia Wholesale Limited, the parent company of JLT Re Colombia, which in turn paid $10.8 million to the third-party introducer. This introducer then paid more than $3 million to government officials at a state-owned insurer in order to help retain and secure their business for JLTSL and JLT Re Colombia.

The FCA found that JLTSL failed to manage their business and risks responsibly and effectively. 

“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,” Mark Steward, executive director of enforcement and market oversight, FCA, said.

The FCA considered that JLTSL’s self-report in June 2017 and assistance during the investigation, including providing investigators with access to materials from JLT Group’s internal investigation, were mitigating factors when determining the appropriate level of financial penalty.