Germany announces plans to create new financial crime authority


Germany is intending to create a new financial crime authority that would seek to bring together several areas under one umbrella, according to Reuters.

The news come following the release of a Germany finance ministry paper last week, which said the new financial authority would bundle several fragmented competencies, including sanctions enforcement.

There are to date more than 300 supervisory bodies across Germany, with the finance ministry making it clear it would like to reduce this number. The ministry hopes to make it easier to tackle complex international money laundering cases, which have been seen as a weak spot for the country.

A government representative – referring to the fight against money laundering – said that the government ‘needs to do better in many areas’.

The current FIU unit, which gets suspicious activity reports, has said it will work with the new authority and a coordination unit will be established to supervise the non-financial sector.

Reuters noted that details on the ministry’s plans will be published this week.

BaFin, Germany’s financial watchdog, recently 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.

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