1MDB scandal claims another scalp as Luxembourg bank admits money laundering

Edmond de Rothschild Europe has decided to settle criminal charges related to the 1MDB scandal for €25 million. This settlement marks a significant moment in the ongoing legal battle surrounding the scandal.

This criminal settlement is a form of acknowledgment by Edmond de Rothschild Europe of its involvement in illicit activities, including money laundering and concealment.

The decision to settle for €25 million reflects the seriousness of the allegations and the commitment to resolving the legal issues surrounding the scandal.

A spokesperson for the Luxembourg prosecutor’s office confirmed the agreement to the Luxembourg Times, stating:

• “The matter was taken under advisement, and a judgment will be rendered on 22 May 2025.”
• The case is now in the hands of the 7th Criminal Chamber of Luxembourg’s District Court, which will issue its decision on that date.

KEY DETAILS:

• Settlement Details: The settlement was finalized with Luxembourg prosecutors, but it is still subject to judicial approval. The final judgment is expected on May 22, 2025
• Background: The charges against Edmond de Rothschild Europe stem from its alleged involvement in facilitating fraudulent transactions linked to the 1MDB scandal. The bank was accused of failing to implement adequate anti-money laundering measures and governance systems
• Impact: This settlement is part of broader efforts to address the financial misconduct associated with the 1MDB scandal, which has had significant global repercussions

KEY FACTS

1. Edmond de Rothschild Europe agreed to a €25 million criminal settlement in connection to its involvement in this widespread scandal. This settlement highlights the enduring legal consequences for financial institutions entangled in illicit activities involving state funds.
2. Edmond de Rothschild Europe, a prestigious private banking group, faced severe scrutiny for its role in the 1MDB scandal, which initially surfaced between 2009 and 2013.
3. At the heart of the issue was the embezzlement of funds from Malaysia’s state investment fund, 1Malaysia Development Berhad (1MDB). The amount in question reached an astonishing $4.5 billion, or roughly €3.3 billion at the time.
4. Among these illicit transfers, approximately €433.7 million was directed to Edmond de Rothschild Europe.
5. Investigators accused the bank of failing to appropriately verify the origins of these funds, which were part of a broader financial conspiracy involving corruption, money laundering, and misappropriation of public funds.

The Legal Implications of the €25 Million Settlement

1. Edmond de Rothschild Europe’s decision to settle the criminal charges for €25 million represents a significant moment in the ongoing legal battle surrounding the 1MDB scandal.
2. The settlement was finalized with Luxembourg prosecutors, but it is still subject to judicial approval, with the final judgment expected on May 22, 2025.
3. This marks an important milestone in a long and complex legal journey for the bank.
4. A representative from the Luxembourg prosecutor’s office confirmed that the settlement had been reached, adding that a ruling would be delivered in May 2025.
5. As of now, the case rests with the 7th Criminal Chamber of Luxembourg’s District Court, which is tasked with issuing the final decision.
6. This criminal settlement is a form of acknowledgment by Edmond de Rothschild Europe of its involvement in illicit activities, including money laundering and concealment.
7. By admitting to these charges, the bank enters a “judgment on agreement” under Luxembourg law. This legal framework allows the bank to resolve criminal liability, though prosecutors are still pursuing legal action against several individuals associated with the scandal.

Source

https://www.flexi-news.com/post/edmond-de-rothschild-europe-agrees-to-25-million-settlement-over-1mdb-scandal#:~:text=Private%20banking%20group%20Edmond%20de,still%20subject%20to%20judicial%20approval