The Processing Fee, the Medical Records and the Sanctioned Payment

Issue-by-issue response

• The USD 8,000 'processing fee'. A payment to an official's personal account to release public records is a facilitation payment and likely bribery. It may breach the UK Bribery Act, the US Foreign Corrupt Practices Act, local anti-corruption law and the insurer's own code. I would refuse, explain the legal risk in writing, and seek the records through formal channels: a written request to the port authority, escalation to its legal department, diplomatic or mutual legal assistance routes, or a court application. If a lawful fee exists, it must be paid to a corporate account against an official receipt.
• 'Off the file'. I would refuse. Destroying or concealing a payment record obstructs the insurer's own governance and may amount to a criminal offence. All dealings must be documented.
• Medical records and interviews. The crew have rights to privacy and bodily integrity. Interviews require informed, voluntary consent and may need to be conducted with a union representative or independent interpreter present. Medical records require the crew's written consent or a court order. The union's refusal does not authorise coercion, but it does not prevent lawful requests to the individuals.
• Sanctioned-jurisdiction payment. I would not ignore this. The payment must be screened against applicable sanctions lists, and the insurer's financial crime team should assess whether a suspicious activity report is required. I would not tip off the owner.
• Email of bank records. Bank statements are sensitive personal and financial data. They should be sent via an encrypted, access-controlled channel, not ordinary email.

My response to the insurer would be a written note setting out these positions and proposing lawful alternatives.

Lawful evidence gathering

1. Formal written request. Write to the port authority's director and legal adviser identifying the vessel, the casualty date, the records sought and the legal basis for the request. Keep a copy.
2. Use lawful routes. Offer to pay any published fee by bank transfer to the authority's official account. If refused, seek assistance from the flag state, the insurer's local counsel, or the relevant government department. A court application or mutual legal assistance request may be appropriate for a total loss of this value.
3. Preservation letters. Send preservation notices to the port authority, fire service, customs and the vessel's local agent so that records and CCTV are not destroyed.
4. Crew interviews. Approach each crew member individually through an independent interpreter. Explain the purpose, the voluntary nature of the interview, their right to decline or to have a representative present, and how their statement will be used. Record consent in writing. Do not offer inducements or threaten immigration consequences.
5. Medical records. Request the crew member's written consent using a clear authorisation form. Explain what will be disclosed and to whom. If consent is refused, do not obtain records covertly; consider whether a court order is proportionate and necessary.
6. Data minimisation and security. Collect only what is relevant, store it securely, restrict access, and apply a retention period. Encrypt transfers.
7. Chain of custody. Log every document and recording received, including date, source, format and handler.

These safeguards protect the evidence from challenge as well as protecting the individuals.

Reporting and escalation

• Internal escalation. Report the bribery request, the sanctioned-jurisdiction payment and the data-handling request to the insurer's compliance, financial crime and legal functions in writing. The instruction to conceal the fee must be escalated, not obeyed.
• Sanctions screening. Screen the paying company, its beneficial owners and the receiving bank against UN, EU, UK and US lists. If there is a match or a red flag, freeze the payment pending advice and consider whether a suspicious activity report is required under local law. Do not disclose the report to the customer.
• Suspicious activity report. If the bank statements suggest money laundering, sanctions evasion or fraud, submit a report to the relevant financial intelligence unit within the required time. Record the decision and the reasons.
• Documentation. Keep a contemporaneous file note of every request, refusal and action, including who instructed what and when. The 'off the file' request should be documented with the response that it was declined.
• Conflict check. Confirm there is no conflict between the insurer's instructions and your professional duties. If the insurer insists on unlawful conduct, decline the instruction and consider whether to resign.
• Payment decision. No payment should be made until the lawful records are obtained, the sanctions position is clear, and the fraud investigation is complete. The final report should separate established facts, unresolved allegations and recommendations.
• Recovery and prevention. Recommend controls to the insurer: enhanced due diligence on West African agents, anti-bribery clauses in engagement letters, secure data transfer protocols and mandatory sanctions screening before payment.

These steps protect the insurer, the investigator and the integrity of the claim file.