JLT Specialty hit with £7.8m fine

JLT Specialty Limited has been fined £7,881,700 for financial crime control failings, which in one instance allowed bribery of over US$3m to take place, the Financial Conduct Authority has confirmed.

JLTSL was part of JLT Group, which had a number of subsidiaries globally.

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 November 2013 and June 2017, JLTSL paid US$12.3m in commission to JLT Colombia Wholesale, the parent company of JLT Re Colombia, which in turn paid US$10.8m to the third-party introducer. This introducer then paid over US$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 city watchdog found that JLTSL failed to manage their business and risks responsibly and effectively.

Mark Steward, executive director of enforcement and market oversight, commented:
“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.”

It is understood that JLTSL’s self-report in June 2017 and assistance during the investigation were mitigating factors in determining the penalty.

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