Liberty Mutual has reached a settlement with the US Department of Justice (DoJ), agreeing to pay $4.7m in relation to bribery charges linked to its subsidiary’s operations in India, reported Bloomberg Law. 

The settlement marks the first enforcement of the Foreign Corrupt Practices Act (FCPA) since the Trump administration’s policy changes on foreign corruption law.  

The insurance company came under scrutiny after it was revealed that its Indian operation had paid approximately $1.5m in bribes to intermediaries.  

These intermediaries, in turn, influenced several state-owned banks to direct customers toward Liberty Mutual’s insurance products, leading to a considerable increase in the company’s revenue and profits in India. 

According to the DoJ, the illicit activities resulted in $9.2m in revenue and $4.7m in profits for Liberty Mutual.  

The agreement, known as a declination, ensures that the company avoids criminal prosecution by repaying the profit earned from these illicit activities.  

The terms of the settlement are notably more stringent than if the investigation had been terminated or if the case had been dismissed prior to trial, the report said.   

Although the DOJ has not specified if charges will be pursued against the individuals who facilitated the bribes, it has highlighted Liberty Mutual’s actions in separating from those involved in the misconduct and its cooperation with the government’s ongoing investigation. 

The resolution of this case will be subject to a senior DoJ review, aligning with the FCPA enforcement guidelines issued by Deputy Attorney General Todd Blanche, the report added.  

In a statement, a Liberty Mutual spokesperson said: “We are pleased the DoJ acknowledged our proactive approach and affirmed our commitment to integrity and compliance across our global enterprise.  

“We welcome this conclusion and, in addition to already taking decisive steps to address this matter, will continue to uphold our values and act responsibly everywhere we do business.”