UK regulator fines insurer Aon for anti-bribery and corruption control failings
LONDON - The UK Financial Services Authority (FSA) has fined Aon £5.25 million for anti-bribery and corruption systems and controls failings. The UK financial watchdog penalised the insurer and risk consultant for controls failings regarding "suspicious payments" to overseas firms and individuals. The penalty is the regulator's largest financial crime-related fine yet issued.
The charges relate to payments amounting to $7 million, made between January 14 and September 30, 2007. Aon failed to assess risks involved in payments to overseas clients and firms that helped the company win business, or to effectively mitigate those risks.
"The involvement of UK financial institutions in corrupt or potentially corrupt practices overseas undermines the integrity of the UK financial services sector," says Margaret Cole, director of FSA enforcement. "The FSA has an important role to play in the steps being taken by the UK to combat overseas bribery and corruption. We have worked closely with other law enforcement agencies in this case and will continue to take robust action focused on firms' systems and controls in this area."
The FSA highlighted Aon's co-operation with the investigation, earning the firm a 10% discount - going so far as to say Aon's proactive senior management efforts to uncover earlier failings were a model for industry best practices.
More on Regulation
ABA calls for better ways to compare bank capital between countries
US regulator will pursue a quicker route to exempt foreign CCPs
ECJ decision means new problems for data preservation
Discussion crystallises over regulatory streamlining
Sign up for Risk.net email alerts
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.