Aon hit with record FSA fine

Insurer Aon has been hit with the FSA's largest ever financial crime-related fine after it unwittingly made more than $7m worth of "suspicious" payments to overseas firms and individuals.

The regulator says the £5.25m fine relates to the company's inadequate bribery and corruption controls, claiming the firm failed to properly ensure its cash wasn't being sent to corrupt practices.

"The involvement of UK financial institutions in corrupt or potentially corrupt practices overseas undermines the integrity of the UK financial services sector," FSA director of enforcement Margaret Cole says.

The FSA says, between 14 January 2005 and 30 September 2007, Aon failed to properly assess the risks involved in its dealings with overseas firms and individuals.

Aon says its conduct was not deliberate, adding it has now "significantly strengthened and enhanced its controls around the usage of third parties".

Peter Harmer, Aon Ltd CEO, says: "We recognise and regret the failings that occurred in our systems and controls for payments to third parties and are pleased that our efforts to remedy and enhance our controls are considered by the FSA to be a model of best practice other firms may wish to adopt."

The FSA says Aon fully cooperated with its investigation and qualified for a 30% discount under its settlement discount scheme. Without the discount the fine would have been £7.5m.

Contact: Scott Sinclair, News Editor, 020 7484 9791 - scott.sinclair@incisivemedia.com