Financial crime

The International Regulatory Risk (IRR) team works with compliance officers from underwriters, brokers and other insurance and financial organisations on a wide range of issues.  The team is dedicated to investigating financial crime that is any way connected to the Lloyd's market.

Verifying cover at Lloyd's
 Lloyd's regularly receives enquiries from members of the public or commercial organisations wishing to check the validity of their insurance documents.  Such enquiries are handled by the IRR team.  In order to confirm the validity of a policy and any supporting documents, IRR carries out a number of checks, which may include contacting brokers, underwriters and or compliance officers directly, to find out if they recognise the name of the risk and if the policy documents are legitimate.  We also ask for assistance in verifying the validity of a policy in circulars issued to the Lloyd's Market via the Lloyd's Market Association.  Incorrect policy documentation can be an indicator of fraud and so we are keen to work closely with compliance officers to respond quickly to all verification requests. 

Fraudulent misuse of the Lloyd's name
An internationally recognised brand, the Lloyd's name is sometimes used fraudulently.  The IRR team works with policyholders, regulators and law enforcement agencies around the world to prevent this and to bring those responsible to justice.  In some cases, a managing agent will find that its name has been misused on documentation or in representations made by third parties.  Whilst the responsibility to protect the managing agent's interests lies with the managing agent itself, IRR can provide support in dealing with the case and assist compliance officers by providing helpful contacts in law enforcement and regulatory organisations both in the UK and Overseas. 

Financial crime
IRR gathers intelligence on crime from across the financial services sector.  We have an extensive network of contacts in regulatory and law enforcement organisations around the world and welcome any information from the underwriting and compliance community regarding any issues affecting Lloyd's.

Money laundering
Whilst the general consensus is that the insurance industry is exposed to lower levels of money laundering risk than other financial sectors, there is still a significant threat to Lloyd's, legally, financially and reputationally, from this source.  Managing Agents should be aware of the obligations imposed upon them to ensure compliance with the relevant anti-money laundering legislation and regulation.  Primarily, market participants should be aware of the requirement to report suspicious transactions to the Lloyd's Money Laundering Reporting Officer ("MLRO") and to ensure their staff are trained to spot suspicious transactions.  IRR assists the MLRO and forwards suspicious transaction reports made on behalf of Lloyd's managing agents to the Serious Organised Crime Agency ("SOCA").  IRR also offers training for managing agents to support their anti-money laundering efforts.  A money laundering market bulletin (pdf 204kb) issued 13 June 2008 sets out Lloyd's approach to tackling money laundering.

Regulators and law enforcement agencies
On issues of financial crime affecting Lloyd's, IRR is the point of contact for financial services regulators and law enforcement agencies around the world.

Contact us
Email regulatoryrisk@lloyds.com, explaining your enquiry and we'll put you in touch with the best person to help you.
Last updated on 25 Sep 2008