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

LUXEMBOURG: A Luxembourg court on Thursday with a fine of the Edmond de Rothschild Bank 25 million euros ($ 28 million) for its role in a money laundering scandal, in which a Malaysian wealth fund lost billions of dollars.

“This is the first time that a Luxembourg banking company was convicted in a case of money:” The judicial authorities of the Grand Duke described after the punishment in the so -called “1MDB” fairy, which contaminated the embezzlement of money from 1malaysia Development Berhad.

The fund, which was then created in 2009 as Prime Minister Najib Razak, which modernized Malaysia, 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, 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.

An investigation opened in 2016, which was opened in the Grand Duchy, 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.

In an explanation, the bank emphasized that the events had taken place in fifties ago and had led to the “implementation of a comprehensive renovation plan in 2019”.

“The employees involved are no longer part of the organization,” says the explanation.

The 71 -year -old Razak, who acted as Prime Minister until 2018, was found guilty two years later

He was initially sentenced to 12 years in prison in 2020, but the prison sentence was halved by a Pardon's board in February last year.

The former prime minister is currently trying to prison in the house arrest.

The judgment on Thursday concludes the case on the bank's criminal liability.

Two further investigations have not yet been completed, one in relation to the Emirati customers and his companies and the other employees and employees of Edmond de Rothschild Europe.