Financial Conduct Authority
Financial crime control failings - FCA publishes Final Notice - 22 June 2022
The FCA has published a final notice (dated 16 June 2022) with respect to insurance broker JLT Specialty Limited (JLTSL) and has issued a fine of £7,881,700 in relation to financial control failings between 21 November 2013 and 6 June 2017.
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. JLTSL paid US$12.3 million in commission to JLT Colombia Wholesale Limited, the parent company of JLT Re Colombia, which in turn paid US$10.8 million to the third-party introducer. This introducer then paid a bribe of over US$3 million to government officials at a state-owned insurer to help retain and secure their business for JLTSL and JLT Re Colombia. The FCA found that JLTSL failed to manage its business and risks responsibly and effectively.
JLTSL qualified for a 30% discount to the fine under the FCA’s executive settlement procedures.
FCA Final Notice: JLT Specialty Limited
Press release
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Insider dealing - FCA seeks re-trial of Stuart Bayes and Jonathan Swann - 22 June 2022
The FCA has announced that it will pursue a re-trial of Stuart Bayes and Jonathan Swann for insider dealing offences. This follows the court’s decision on 25 May 2022 to discharge the jury after they were unable to reach a verdict following an eight-week trial at Southwark Crown Court. The court has set the date of 11 September 2023 for retrial.
The alleged offending took place between 2 May 2016 and 10 June 2016, and involved trading in shares in British Polythene Industries plc (BPI), ahead of an announcement that RPC Group plc was to acquire BPI. During this period, Mr Bayes was employed by RPC Group plc and Mr Swann worked as a tenancy support officer. The total profit from alleged insider dealing was approximately £138,700.
Press release
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AML controls failings - FCA publishes decision notice - 23 June 2022
The FCA has published a decision notice issued to Ghana International Bank Plc (the Bank) indicating that the FCA has fined the Bank £5,829,900 for failings in its anti-money laundering (AML) controls.
The Bank provided correspondent banking services to overseas banks. The FCA found that between 1 January 2012 and 31 December 2016, the Bank did not adequately perform the additional checks required when it established relationships with the overseas banks, and failed to demonstrate it had assessed those banks’ AML controls. The Bank also failed to undertake annual reviews of the information it held on its relationship banks, failed to give staff adequate training on how to scrutinise transactions properly, and did not establish appropriate policies and procedures for staff. The FCA notes that although no evidence of actual money laundering was detected during its December 2016 visit to the Bank, it identified a significant risk of money laundering as a result of deficient AML and counter-terrorist financing controls.
Following the visit, the Bank voluntarily agreed not to take on new customers. This restriction remains in place. The Bank qualified for a 30% discount to the fine under the FCA’s executive settlement procedures.
FCA Decision Notice: Ghana International Bank Plc (204471)
Press release
