Aon cops record fine from UK regulator
Former Aon Australia CEO Peter Harmer says other UK insurance providers will be under the gun after Aon’s UK arm copped a record £5.25 million ($11.3 million) fine for poor controls against bribery and corruption.
The Financial Services Authority (FSA) alleged a “weak control environment” failed to ensure money paid by Aon was not passed on in bribes by third parties. Its allegations primarily stem from aviation and energy lines traded in developing countries.
FSA Director of Enforcement Margaret Cole says the fine sends a clear message to the UK industry “that it is completely unacceptable for firms to conduct business overseas without having in place appropriate anti-bribery and corruption systems”.
A total of $US7 million ($15 million) in suspicious transactions was found to have changed hands between January 2005 and September 2007.
Foreign regulators flagged the irregularities to Aon, prompting an eventual investigation by the company into the payments. The FSA reduced the fine by 30% due to Aon’s co-operation with the regulator.
Mr Harmer, who has been running Aon’s UK operations for several years, says the company has since introduced strict anti-corruption measures, and claims other providers will be forced to follow suit.
The Financial Services Authority (FSA) alleged a “weak control environment” failed to ensure money paid by Aon was not passed on in bribes by third parties. Its allegations primarily stem from aviation and energy lines traded in developing countries.
FSA Director of Enforcement Margaret Cole says the fine sends a clear message to the UK industry “that it is completely unacceptable for firms to conduct business overseas without having in place appropriate anti-bribery and corruption systems”.
A total of $US7 million ($15 million) in suspicious transactions was found to have changed hands between January 2005 and September 2007.
Foreign regulators flagged the irregularities to Aon, prompting an eventual investigation by the company into the payments. The FSA reduced the fine by 30% due to Aon’s co-operation with the regulator.
Mr Harmer, who has been running Aon’s UK operations for several years, says the company has since introduced strict anti-corruption measures, and claims other providers will be forced to follow suit.