WASHINGTON Dec 17 German insurer Allianz SE
has agreed to pay $12.4 million to resolve charges it
violated a U.S. foreign bribery law, the U.S. Securities and
Exchange Commission said on Monday.
The SEC said Allianz violated the Foreign Corrupt Practices
Act (FCPA) with improper records of payments to government
officials in Indonesia during a seven-year period.
Regulators said the violations occurred from 2001 to 2008.
Allianz later delisted from the New York Stock Exchange, but the
SEC charged the insurer for violations that occurred while it
was still under U.S. oversight.
Allianz neither admitted nor denied the findings, the SEC
Allianz spokesman Michael Matern said the company had
investigated the matter and updated its anti-corruption policies
as a result, including updating its third-party contracts and
enhancing its due diligence process.
The SEC said it found that improper payments by a subsidiary
in Indonesia of more than $650,000 to employees of state-owned
groups helped Allianz obtain 295 insurance contracts on large
"Allianz's subsidiary created an 'off-the-books' account
that served as a slush fund for bribe payments to foreign
officials to win insurance contracts worth several million
dollars," Kara Brockmeyer, who leads the FCPA unit of the SEC's
enforcement division, said in a statement.
In 2005, an audit found that managers in Indonesia were
using special accounts to pay off government officials. A second
complaint in 2009 showed that Allianz did not properly account
for some payments in its books.
The payments contributed to more than $5.3 million in
profits, the SEC said.
The U.S. Justice Department dropped a related inquiry
earlier this year without bringing charges against the company.