One of London's biggest insurance brokers, Aon, was today fined £5.25 million for anti-corruption failings after making suspicious payments to help win business in overseas jurisdictions.

The fine was one of the largest ever meted out by the Financial Services Authority and the first ever for a company failing to crack down on possible bribery.

Aon, the UK subsidiary of Aon Corporation of the US, made 66 suspicious payments to win or retain business in Bahrain, Bangladesh, Bulgaria, Burma, Indonesia and Vietnam, the FSA said. The payments amounted to $2.5 million and €3.4 million.

The payments were reported to the Serious Organised Crime Agency. The fine would have been £7.5 million but for Aon's co-operation and willingness to settle at an early stage.

Margaret Cole, director of enforcement at the FSA, said, "This sends a clear message to the UK 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."

Aon admitted today it had made "a number of potentially inappropriate payments" to third parties in non-UK high risk jurisdictions. It said the FSA agreed the neither deliberate nor reckless. It has since committed to remedy its systems and controls to prevent the failings happening again.

Aon's American parent, Aon Corporation, is a Fortune 500 company. It moved into the UK about a decade ago with the acquisition of several local insurance brokers.

It owns Bain Hogg, Alexander & Alexander, Alexander Howden group and Minet, and began trading as Aon Limited in Britain in 2001.

It is known for its risk management practice in the UK and also operates a pensions consulting business. It transformed itself last year with the acquisition of Benfield, the London-listed reinsurance broker.

Aon was advised during the FSA's investigation by Freshfields Bruckhaus Deringer, the law firm.

Raj Parker, its lead partner, said the fine showed how the regulator was tightening its control of the way companies make payments to third parties overseas, particularly in jurisdictions where the risk of corruption is high.

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