Insurance broker JLT Specialty Limited has been fined £7.8m by the FCA for financial crime control failings.

The regulator revealed that in one instance, JLT Speciality allowed bribery of over $3m to take place.

JLT Speciality is based in the UK and provided insurance broking, risk management and insurance claims services. The firm was part of JLT Group, which had a number of subsidiaries around the world. JLT Speciality had placed business in the London reinsurance market for JLT Re Colombia, another company in the JLT group, and this business was introduced by a third-party based in Panama.

Between November 2013 and June 2017, JLT Speciality 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 its business for JLT Speciality and JLT Re Colombia.

Following an investigation, the FCA found that JLT Speciality had “failed to manage its business and risks responsibly and effectively”.

“Lax controls by JLT Specialty meant, ultimately, that money flowed into the pockets of corrupt officials,” commented FCA executive director of enforcement and market oversight, Mark Steward, commented. “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.”

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