Staff at the security firm received instructions from the company's headquarters in Karlsruhe, according to which refugees had to fill out a form during the asylum registration procedure stating that they are carrying less than 750 euros in cash.
Anything over this sum, the refugees are supposed to hand over to the authorities to go towards the cost of their accommodation and meals.
However, Munich state prosecutor Thomas Steinkraus-Koch alleges that security staff at the center forced asylum seekers with money over the 750 euro limit to hand it to them, and falsely state on the form that they had less than 750 euros.
The staff reportedly threatened to send the migrants back to their native country if they did not comply, Suddeutche Zeitung reported.
"Ironically, the security firm which employs the staff at the center of the allegations is to now handle social care in the asylum center, which had previously been carried out by a team from the 'Innere Mission' (an Evangelical Christian mission)," the newspaper wrote.
That decision had already come in for criticism prior to the recent allegations, and an Upper Bavaria government spokesman told the newspaper that the outcome of the investigation will have a bearing on the company's involvement in the provision of social care at the asylum center.
