Private bank Edmond de Rothschild Europe, based in Luxembourg, has agreed to pay €25 million to settle serious criminal charges. These charges are linked to the now-infamous 1MDB scandal, which saw billions of euros stolen from Malaysia’s public money fund.
The agreement was made last week with Luxembourg’s prosecutors. However, it’s not final yet. The deal still needs to be approved by a judge. The 7th Criminal Chamber of Luxembourg’s District Court will decide on May 22, 2025, whether to accept the settlement.
The 1MDB scandal began over a decade ago and is considered one of the largest financial crimes in the world. It involved a massive theft of money from Malaysia’s sovereign wealth fund, known as 1MDB. Between 2009 and 2013, investigators say around $4.5 billion—equal to about €3.3 billion back then—was wrongly taken from the fund. A big chunk of this money, about €433.7 million, ended up being moved through Edmond de Rothschild Europe.
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Prosecutors say the Edmond de Rothschild Europe didn’t do enough to check where the money came from. Banks are supposed to ask questions and verify funds, especially when large sums are involved. In this case, Luxembourg officials said the bank failed to do that. Because of these failures, illegal money was allowed to move through the financial system.
Edmond de Rothschild Europe Admits Crimes and Agrees to Settle
After a long investigation, which a magistrate called “very complex,” the bank finally agreed to settle. Under Luxembourg law, this kind of settlement is known as a jugement sur accord. That’s a special legal deal where a person—or in this case, a company—admits to committing crimes and agrees to pay a fine.
Edmond de Rothschild Europe admitted to two crimes: money laundering and concealment. Money laundering means hiding the true source of illegal money to make it look legal. Concealment refers to hiding information or assets that are connected to a crime.
By admitting to these crimes, the bank accepted that it was involved in wrongdoing. A spokesperson from the prosecutor’s office confirmed that the bank had “acknowledged” its role in the illegal activity. The €25 million payment is meant to settle the bank’s part in the criminal side of the scandal.
However, this doesn’t end the story for everyone involved. While the bank’s criminal responsibility might be settled with this payment, prosecutors are still going after four people connected to the case. The investigation into their actions continues.
The bank has not said anything publicly about the deal. It explained that because legal actions are still ongoing for others, it cannot make comments at this time.
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Previous Fine Shows Ongoing Issues
This isn’t the first time Edmond de Rothschild Europe has been in trouble over 1MDB. Back in 2017, Luxembourg’s financial watchdog, called the Commission de Surveillance du Secteur Financier (CSSF), found problems with how the bank was handling its duties. At that time, the bank was fined nearly €9 million. The CSSF said the bank had not followed proper procedures when it came to checking where clients’ money came from and what it was being used for.
The 1MDB scandal has caused problems for many banks and officials around the world. Governments and investigators across many countries have been working hard to track down the missing money and hold those involved responsible. For Edmond de Rothschild Europe, this €25 million settlement is the latest step in a long, complicated legal story.
As of now, the court in Luxembourg will decide in May whether to accept this agreement. Until then, the settlement is not official. But if approved, it will mark a major moment in the bank’s long-running involvement with one of the biggest financial scandals in recent history.
