German regulator BaFin calls on Allianz to bolster internal controls


BaFin, Germany’s financial watchdog, has called on Allianz to improve its internal controls following fraud at its US funds unit, Reuters claims.  

The news was revealed by an unnamed individual last week. Reuters said this is the latest development in a scandal that has dogged the company for two years.

BaFin sent Allianz a letter with concrete demands for controls improvements a few weeks ago. Earlier this year, Allianz agreed to pay over $6bn and its US asset management unit pleaded guilty to criminal securities fraud over the collapse of a group of investment funds early in the COVID-19 pandemic.

Allianz told WirtschaftsWoche that ‘it always meets the highest risk management and compliance standards’. Reuters reported in 2021 that BaFin was looking into the demise of the funds after US regulators opened their own probes.

Allianz recently disclosed it spent around €140m on restructuring to wind down the U.S. funds unit at the centre of the fraud, an expense that added to a worse-than-expected 23% fall in quarterly profit.

Allianz Partners USA previously extended its long-term partnership with JetBlue Travel Products, a subsidiary of JetBlue Airways.

The partnership will provide JetBlue customers the ability to protect both their flights and vacation packages with embedded travel insurance offerings.

JetBlue Vacations Travel Experts will also now be able to offer plans over the phone to customers purchasing JetBlue Vacations packages.

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