Luxembourg Bank took a fine of € 25 million over 1 MdB scandal

“This is the first time that a Luxembourg bank company was convicted in a money laundering procedure,” noticed the court duke's court authorities after the punishment, in which 1MDB contaminated money.

The fund, created in 2009 as then Prime Minister Najib Razak, tried to modernize Malaysia, soon involved in accusations of corruption, which led to a number of studies, especially in Switzerland, Singapore and the USA.

“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.

An investigation opened as part of the Grand Duchy in 2016 showed that “the funds of 1MDB were ultimately credited to the bank accounts of several of these companies by complex international financial flows”.

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 a statement, the bank emphasized that the events had taken place “15 years ago” and led to “implementing a comprehensive renovation plan … (which was completed in 2019)”.

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

The 71 -year -old Najib, who worked as a prime minister from 2009 to 2018, was found to be guilty two years later, the 1MDB scandal also cost him the 2018 parliamentary elections.

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.