The parent company of one of Bermuda’s largest reinsurance brokers has reached a $16.3 million settlement over the charge of improper payments to foreign government officials to obtain overseas contracts.According to the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ), between 1983 and 2007, Aon Corp, the second largest global re/insurance brokerage, made direct and indirect payments to government officials in emerging markets who could award business to Aon subsidiaries.The complaint alleges that Aon made more than $11.4 million in profits from bribes to officials in Costa Rica, Egypt, Vietnam, Indonesia, United Arab Emirates, Myanmar, and Bangladesh.The complaint also alleges these improper payments were not accurately reflected in Aon’s books and records, and Aon failed to maintain an adequate internal control system reasonably designed to detect and prevent bribery.Aon has agreed to pay $1.76 million to the DOJ as part of a non-prosecution agreement and about $14.55 million to the SEC in disgorgement and interest to settle a civil action.“Aon’s liability is not premised on an isolated instance of misconduct,” Kara Brockmeyer, chief of the SEC Enforcement Division’s Foreign Corrupt Practices Act unit, said in a statement. “Rather, for years, Aon’s subsidiaries repeatedly engaged in misconduct around the world.”According to BestWire, Aon’s UK subsidiary, Aon Ltd, handled training and education funds in connection with its reinsurance business with Instituto Nacional De Seguros (INS), Costa Rica’s state-owned insurance company.The funds were to provide education and training for INS officials, but instead Aon Ltd allegedly used a significant portion of the funds between 1997 and 2005 to reimburse INS officials for non-training related activity, including travel with spouses to overseas tourist destinations, or for uses that could not be determined from Aon’s books and records. According to the DOJ: “the expenses were clearly not related to a legitimate business purpose.”In addition to the monetary penalty, the DOJ agreement requires that Aon adhere to rigorous compliance, bookkeeping and internal controls standards and cooperate fully with the department.Aon said it began an internal review of these issues in 2007 and has since put in place a comprehensive, global and robust anti-corruption program designed to prevent and detect improper conduct.“Aon has invested a significant amount of time and resources in anti-corruption compliance and transparency to greatly enhance our controls and processes,” said Aon president and CEO Greg Case, in a statement.The company said it expects no impact on fourth-quarter results as the settlement amounts were accrued for in prior periods.According to BestWire, Aon is not the only global broker to run into trouble with alleged improper payments. Earlier this year, UK’s Financial Services Authority fined broker Willis Ltd, who also has a branch in Bermuda, £6.9 million “for failings in its anti-bribery and corruption systems and controls”.