German watchdog urges Allianz to improve internal controls

Germany’s financial regulator BaFin has call on Allianz to improve its internal controls following a fraud scandal in their US fund unit. A source told Reuters that BaFin sent the German financial services company a letter calling for improvement of controls weeks ago. This is the latest in a string of fraud-related developments across Allianz’s undertakings in the US. In May 2021, Allianz paid over $6 billion and its US funds unit pleaded guilty to criminal securities fraud for collapsed investment funds early on during the pandemic. An investigation conducted by BaFin last summer revealed that guilt lay with the hedge fund managers. An Allianz spokesperson informed German business news magazine, WirtschaftsWoche, that the company “always meets the highest risk management and compliance standards,” and as an “improving and learning organization, this leads to a culture of continuous improvement at Allianz, strengthens our resilience and lays the foundation for the successful execution of the Allianz group strategy and the accompanying digital transformation.”