German regulator asks Allianz to improve controls – source

The Allianz logo is seen on a building in Paris, France, April 30, 2020. REUTERS/Charles Platiau/File Photo GLOBAL BUSINESS WEEK AHEAD

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FRANKFURT, Aug 12 (Reuters) – German financial watchdog BaFin has asked Allianz (ALVG.DE) to improve internal controls following fraud at its U.S. fund unit, a person familiar with the matter said on Friday. the case. scandal that has plagued the company for two years.

The regulator sent Allianz a letter with concrete requests for improved controls a few weeks ago, the person said, speaking on condition of anonymity.

In May, Allianz agreed to pay more than $6 billion and its U.S. asset management unit pleaded guilty to criminal securities fraud following the collapse of a group of investment funds in early the COVID-19 pandemic. Read more

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WirtschaftsWoche first reported on the letter earlier on Friday.

Allianz declined to comment to Reuters but told WirtschaftsWoche it always adheres to the highest risk management and compliance standards.

Reuters reported last year that BaFin was investigating the disappearance of the funds after US regulators launched their own investigations. Read more

Allianz last week revealed it spent around 140 million euros on restructuring to dissolve the US fund unit at the center of the fraud, an expense that came on top of a worse-than-expected 23% drop in quarterly profit. . Read more

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Reporting by Alexandre Huebner; Written by Tom Sims; edited by Rachel More, Maria Sheahan, Sabine Wollrab

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