FSA hits Aon with $7.9M fine

Britain’s Financial Services Authority has fined international reinsurance giant Aon Ltd. 5.25 million pounds ($7.9 million) for failing to maintain effective anti-bribery systems designed to protect payments to firms and people overseas. The London-based regulator alleged that Aon, also of London, failed to assess those anti-bribery risks between Jan. 14, 2005 and Sept. 30, 2007. The lack of controls at the firm led employees to make $7 million in suspicious payments to a number of firms and people overseas, including Bahrain, Bangladesh and Vietnam. It is the largest financial crime-related fine imposed by the FSA, noted Margaret Cole, director of enforcement. “It sends a clear message to the U.K. financial services industry that it is completely unacceptable for firms to conduct business overseas without having in place appropriate anti-bribery and corruption systems and controls,” she said in a statement. The firm cooperated with the FSA and settled at an early stage of the regulator’s investigation. Aon also qualified for a 30% discount under the FSA’s settlement discount plan — it would have paid 7.5 million pounds if the probe had proceeded. Aon acknowledged the fine in a company release. “We recognize and regret the failings that occurred in our systems and controls for payments to third parties,” said Peter Harmer, chief executive of the company.