Alleged Ecuador Bribes Lead to Charges Against UIB

United Insurance Brokers Limited (UIB), a prominent Lloyd's of London reinsurance broker, has been charged by the UK's Serious Fraud Office (SFO) for allegedly failing to prevent bribery in Ecuador between 2013 and 2016. The SFO alleges that UIB's U.S.-based intermediaries paid approximately $3 million in bribes to Ecuadorian officials to secure reinsurance contracts worth $38 million with state-owned insurers covering public services such as water and electricity.

The charges are brought under the UK Bribery Act's "failure to prevent" provision, marking a significant application of this corporate offense. Notably, no current or former employees of UIB have been individually charged; the allegations pertain to the actions of third parties in Ecuador and the U.S.

UIB representatives are scheduled to appear before Westminster Magistrates' Court on May 7. This case is part of a broader initiative by the SFO to combat international bribery, including the formation of a joint task force with French and Swiss prosecutors. ​

In response, UIB stated: "The charge brought today concerns historical allegations during the period 2013–2016. No individual employees or officers of UIBL, past or present, have been charged. The charge against the company arises out of the alleged conduct of third ... U.S., pursuant to the UK's 'failure ... offense." ​

This development underscores the increasing scrutiny on UK-based financial firms' international operations and the importance of robust compliance measures to prevent corruptio