(Reuters) – The UK’s Financial Conduct Authority on Wednesday fined £ 7.9 million ($ 9.66 million) to insurance broker JLT Specialty for failing to control financial crime, which in one case allowed bribes of more than $ 3 million to take place.
The watchdog found that JLT Specialty, which is based in the UK, failed to manage its operations and risks responsibly and efficiently.
The broker placed trades 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.
JLT Specialty paid $ 12.3 million in commission to JLT Re Colombia’s parent company, which in turn paid $ 10.8 million to the third-party introducer.
This introducer then paid over $ 3 million to government officials at a state-owned insurance company to help secure business for JLT companies.
The economic crimes took place between November 2013 and June 2017.
“Loose controls of JLT Specialty ultimately meant that money flowed into the pockets of corrupt officials,” said Mark Steward, FCA’s executive director of market enforcement and market surveillance.
The FCA previously fined the broker £ 1.9 million in December 2013 for similar risk control failures involving foreign introducers and bribes and corruption.
JLT was acquired by rival Marsh in 2019.
“This case relates to a former JLT employee who pleaded guilty to charges arising from acts that took place in Ecuador in 2014-2016, prior to the acquisition of JLT 2019,” a Marsh spokesman said via email.
“In early 2018, the JLT voluntarily reported this matter to law enforcement agencies. As previously revealed, we have fully cooperated with the FCA investigation and are pleased to be able to put this issue behind us.”