Financial supervision imposed fine against Luxembourgian subsidiary of the Allianz Group
Allianz Global Investors, the Luxembourg subsidiary of the Global Insurance Company Allianz, was sentenced to a fine of 283,000 euros by the Luxembourg Financial Supervisory Authority CSSF for violations of money laundering laws.
Allianz Global Investors received the fine in March 2022 after an inspection on site in 2018, the CSSF announced on Friday. The company had sued the sanction of the Luxembourg Administrative Court, which confirmed the decision of the financial supervisory authority in a judgment of February, according to the CSSF.
In the inspection, several violations of the regulations to combat money laundering and terrorist financing were revealed. Among other things, it was found that the company’s risk analysis did not consider the over 1,000 people who invested directly in the funds managed by the branch.
The financial supervisory authority came to the conclusion that the company’s DUE diligence procedures were also insufficient for both investors and intermediate investors. Allianz Global Investors had failed to provide evidence of complete initial and continuous documentation, including the source of assets.
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« A lack of responsiveness »
At the time of the admission of this investor, the company had classified the risk of money and terrorism as « low », according to the CSSF, which represents a violation of the regulations.
The CSSF announced that when the amount of the fines of the “type, severity and duration” of the compliance violations as well as the financial situation of the Luxembourg branch at the time of the on-site examination and the “lack of reaction” in relation to the corrective measures to be implemented.
A spokesman for Allianz Global Investors told the Luxembourg Timesthat the company took remedial measures in 2022 according to the findings of the CSSF. In addition, he wanted to emphasize that « the findings of the on-site inspection were of documentary or process-related nature and did not provide any case of money laundering ».
This article first appeared at Luxembourg Times. Translation and processing: Melanie Ptok.
