The US Securities and Exchange Commission(SEC)has charged Germany based insurance and asset management company Allianz for breaching the books and records and internal controls rules of the Foreign Corrupt Practices Act(FCPA).
According to the SEC's order,the underwriter paid large amount of bribes to government officials in Indonesia during a seven-year period from 2001 to 2008.
The market regulator alleges that Allianz's subsidiary in Indonesia got 295 insurance contracts on large government projects and subsequently earned over$5.3m in profits due to improper payments.
The company in one instance tried to restructure the unlawful payment(bribe)as an overpayment and later reimbursed the same to a government insurance contract holder,while the second time disguised it as an"overriding commission"..
SEC enforcement division FCPA unit chief Kara Brockmeyer said,"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."
The company has agreed to cease and desist from further violations and pay disgorgement of$5,315,649,prejudgment interest of$1,765,125,and a penalty of$5,315,649 for a total of$12,396,423,to settle the SEC's charges.
