Allianz fined for money laundering breaches

The deficiencies in nine categories of regulations were identified during an onsite review of the German insurance group’s Bermudian subsidiary by the BMA.

“While the authority found no evidence of money laundering or terrorist financing, the authority required the company to remediate these findings within a prescribed time period,” the BMA said. “However, such remediation was not completed to the satisfaction of the authority.”

It added: “The authority views these breaches as serious because of their extent and duration, and because they demonstrated a weakness of the company’s controls to ensure full compliance with the regulations and sanctions.”

The fine for those failings was US$1.25m.

On the Insurance Act matters, the BMA said Allianz “has demonstrated a pattern of non-compliance” with legislation by not having a resident director in Bermuda at all times, not holding regular Bermuda decision-making meetings, not maintaining a head office on the island, or ensuring annual filings were accurate, adequate and timely.

The company was fined US$450,000 for breaching eight sections of the act. 

Allianz has accepted the authority’s findings and has paid the full, US$1.7m penalty, the BMA said.

“The company has further agreed to continue with its plan to cancel its registration under the Insurance Act and will promptly thereafter commence liquidation proceedings,” the authority added.