Luxembourg Bank, a fine because of the Malaysian 1MDB fund scandal

Luxembourg: A Luxembourg court on Thursday (May 22nd) with a fine of the Edmond de Rothschild Bank € 25 million ($ 28 million) for their role in a change of money in which a Malaysian wealth fund lost billions of dollars.

“This is the first time that a Luxembourg banking company was convicted in a money laundering process,” noticed the court duke's court authorities after the punishment in the so-called 1MDB matter, which concerns the embezzlement of money from 1malaysia Development Berhad (1MDB).

The fund, created in 2009 as then Prime Minister Najib Razak, set out to modernize Malaysia, which was soon involved in allegations of corruption, which led to a number of studies, especially in Switzerland, Singapore and the United States.

“A very large part of the funds collected by 1MDB was deported … especially between 2009 and 2013 by the Prime Minister, the Malaysian official and others,” said the court.

In Luxembourg, in which the European subsidiary of the Edmond de Rothschild Bank in Switzerland takes place, dozens of accounts that were opened when setting up an Emirati state member in the name of a number of different companies were opened to distract money from the fund.

The investigation, which was opened in Grand Duchy in 2016, “showed that complex international financial flows funded by 1MDB ultimately credited to the bank accounts of several of these companies”.

Before he arrives on the accounts, the cash moved through a number of different financial jurisdiction, including the Caribbean tax bunnies, the court said.