# German regulator calls on Allianz to improve controls – source
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-08-12
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: BaFin calls on Allianz to improve internal controls after
Meta Description: Allianz urged to enhance controls following $6 billion settlement and guilty plea over securities fraud in the U.S. WirtschaftsWoche first reported the letter.
URL: https://financedigest.com/german-regulator-calls-on-allianz-to-improve-controls-sourcehtml

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FRANKFURT (Reuters) – Germany’s financial watchdog BaFin has called on Allianz to improve its internal controls following fraud at its U.S. funds unit, a person with knowledge of the matter said on Friday, the latest development in a scandal that has dogged the company for two years.

The [regulator sent Allianz a letter with concrete demands for controls](https://www.financedigest.com/analysis-u-s-regulators-could-be-pressured-by-slim-republican-house-control.html "Analysis-U.S. regulators could be pressured by slim Republican House control") improvements some weeks ago, said the person, speaking on condition of anonymity.

In May, Allianz [agreed to pay](https://www.financedigest.com/eu-agrees-law-to-make-airlines-pay-more-to-pollute.html "EU agrees law to make airlines pay more to pollute") more than $6 billion and its U.S. asset management unit pleaded guilty to criminal securities fraud over the collapse of a group of [investment funds early in the COVID-19 pandemic](https://www.financedigest.com/3-investing-lessons-you-can-learn-from-still-evolving-pandemic.html "3 Investing lessons you can learn from still-evolving pandemic").

WirtschaftsWoche first reported about the letter earlier Friday.

Allianz declined to comment to Reuters but told WirtschaftsWoche it always meets the highest [risk management](https://www.financedigest.com/aon-announces-agreement-to-acquire-risk-management-firm-creating-a-comprehensive-cyber-risk-management-advisory-group.html "Aon announces agreement to acquire risk management firm, creating a comprehensive cyber risk management advisory group") and compliance standards.

[Reuters reported last year](https://www.financedigest.com/germany-home-prices-to-sink-nearly-6-this-year-reuters-poll.html "Germany home prices to sink nearly 6% this year – Reuters Poll") that BaFin was looking into the demise of the funds after U.S. regulators [opened their own probes](https://www.financedigest.com/eu-opens-antitrust-probe-into-broadcoms-61-billion-vmware-bid.html "EU opens antitrust probe into Broadcom’s  billion VMware bid").

Last week, Allianz disclosed it spent around 140 [million euros](https://www.financedigest.com/stellantis-to-invest-130-million-euros-in-german-plant-for-new-opel-electric-car.html "Stellantis to invest 130 million euros in German plant for new Opel electric car") 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](https://www.financedigest.com/ericssons-quarterly-core-profit-misses-expectations.html "Ericsson’s quarterly core profit misses expectations").

(Reporting by Alexander Huebner; Writing by Tom Sims; editing by Rachel More, Maria Sheahan, Sabine Wollrab)


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