In August 2025, prosecutors entered into a declination with disgorgement* with Liberty Mutual Insurance Company, a U.S.-based insurance provider.
According to publicly available information, between 2017 and 2022 Liberty Mutual, through its Indian subsidiary Liberty General Insurance (LGI), paid approximately USD 1.47 million in bribes to officials of six state-owned banks to obtain or retain business with them. In exchange for the payments, bank officials directed customers to LGI for insurance products. Certain LGI employees took steps to conceal the true nature of the payments, including classifying them as marketing expenses and using third-party intermediaries to transfer funds to officials. The scheme generated approximately USD 9.2 million in revenue and around USD 4.7 million in profit.
Liberty Mutual voluntarily disclosed the misconduct to prosecutors, cooperated extensively with the investigation, and implemented a range of remedial measures. These included terminating employees involved in the misconduct and significantly enhancing its compliance program (strengthening due diligence, monitoring, and oversight of payments to third parties across all global markets; structural reorganization coupled with increased legal and compliance resources; adoption of enhanced policies, including rules governing the use of social media and instant messaging applications for business purposes). As a result, the company received a declination and agreed to disgorge approximately USD 4.7 million in illicit profits.
In November, it became known that the telecommunications company Comunicaciones Celulares S.A. (operating as TIGO Guatemala) had entered into a Deferred Prosecution Agreement (DPA) with the DOJ.
According to case materials, between 2012 and 2018 TIGO Guatemala, acting through its Guatemalan shareholder, officers, employees, and agents, made monthly improper payments to members of the Guatemalan Congress in exchange for their support of legislation favorable to the company. This included the adoption of a 2012 law that allowed TIGO Guatemala to extend its usufruct rights to radio frequencies for 20 additional years (granting the right to use, possess, and derive benefit from the spectrum, while the state retained ownership), as well as a 2014 law informally known as the “TIGO Law” (“Ley TIGO”), which disproportionately benefited TIGO Guatemala. Officials or their security staff typically received cash directly at the company’s offices. In some instances, entire bags of cash were delivered by helicopter to the office and then handed over to government officials or political parties. Through this improper influence, the company obtained at least USD 58 million in profit.
During the period of misconduct, TIGO Guatemala was jointly owned by Millicom International Cellular S.A. (55%) and a Panamanian company (45%). In 2015, after Millicom became aware of the scheme, it voluntarily disclosed the information to the DOJ. However, despite its ownership interest, Millicom did not have operational control: the Panamanian shareholder exercised full control over TIGO Guatemala, restricted Millicom’s access to critical information, and prevented it from fully cooperating with the investigation. Consequently, in 2018 the investigation had to be suspended. When new evidence emerged in 2020, the DOJ reopened the matter. In 2021, Millicom acquired the Panamanian shareholder’s stake and made TIGO Guatemala its wholly owned subsidiary.
Although prosecutors acknowledged the voluntary disclosure, cooperation, and remediation, the DOJ determined that TIGO Guatemala did not satisfy the requirements of the Corporate Enforcement and Voluntary Self-Disclosure Policy and therefore was not eligible for a declination. Instead, the company entered into a DPA requiring payment of a USD 60 million criminal penalty and forfeiture of approximately USD 58 million in illicit profits.
*Declination with disgorgement – an agreement under which, despite evidence suggesting possible violations, the enforcement authority does not file charges under the FCPA, does not initiate a full prosecution, and does not impose a criminal fine (although other sanctions – typically disgorgement of illicit profits – may apply). Under the DOJ’s updated guidance, a company is entitled to a declination if it (1) voluntarily self-discloses misconduct, (2) fully cooperates, (3) timely and appropriately remediates, and (4) has no aggravating circumstances.
