Latest Insurance
- FCA fines JLT Specialty £7.8m for financial crime control failings
- Marsh McLennan creates new Senior Leadership positions
- The link between data hygiene and enterprise value improvements-Thomas Viljeon,CEO Prodinity
- On-road hydrogen vehicles to exceed 1m globally by 2027
- Acrisure acquires Russell Scanlan
- INSTANDA raises $45m to fund its next phase of growth
- EquiTrust Life Partners with Sapiens on their Next Generation Digital Agent Experience expired
- Removing the ‘File and Use’ health insurance policy that caused delays to COVID-19-related products will be a game-changer in India, says GlobalData expired
- Lancashire senior underwriting appointments expired
- Hands to succeed Collins as Miller CEO expired
- Nexus Underwriting establishes new Financial Lines Division-Nexus Frontier expired
- Newslink Global Insurance Trends-Editor's Weekly Highlights expired
22nd June 2022
FCA fines JLT Specialty £7.8m for financial crime control failings
Trend
The Financial Conduct Authority(FCA) has fined JLT Specialty Limited JLTSL) £7,881,700 for financial crime control failings, which in one instance allowed bribery of over $3m to take place.
JLTSL is based in the UK and provided insurance broking, risk management and insurance claims services. It was part of JLT Group plc, which had a number of 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.
Between 21st November 2013 and 6th June 2017, JLTSL paid $12.3m in commission to JLT Colombia Wholesale Limited, the parent company of JLT Re Colombia, which in turn paid $10.8m to the third-party introducer. This introducer then paid over $3m 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.
Mark Steward, executive director of Enforcement and Market Oversight, comments “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.”
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.
The fine of £7,881,700 follows JLTSL’s agreement to settle at an early stage of the investigation. As a result, it qualifies for a 30% reduction on the original penalty of £11,259,500.
On 1st April 2019, JLT Group plc was acquired by Marsh & McLennan Companies. JLTSL has been non-trading since the sale of its trade, assets and liabilities in 2020.
The FCA previously fined JLTSL £1,876,000 in December 2013 for similar risk control failures around Overseas Introducers and bribery and corruption.
JLT Trends(189 articles)
Marsh McLennan Trends(833 articles)
