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Lux Regulator suspends Rothschild ex-CEO for ten years-AML and governance and prudent risk management

01/04/2020

Luxembourg's finance watchdog suspended the former CEO of private bank Edmond de Rothschild (Europe), Marc Ambroisien, for a decade, no longer allowing him to work in finance in the country over that period.

The Comite de Surveillance du Secteur Financier (CSSF) accused Ambroisien of having failed to ensure strong internal governance and prudent risk management when managing the bank.

It also found the former CEO had failed to safeguard measures against money laundering and financing terrorism. In 2017, two years after Ambroisien had stepped down, Edmond de Rothschild was fined almost €9 million by the CSSF for not applying rules aimed at fighting money laundering and hindering terrorism financing.

The bank said in its 2017 annual report that it had paid the fine after the CSSF had notified it of a possible fraud involving former Malaysia Prime Minister Najib Razak's 1MDB investment fund. It said the fine had ended the legal proceedings in which it had "actively collaborated".

The fund became embroiled in a prominent financial scandal after missing payments and a Wall Street Journal investigation which traced almost $700 million from the fund to Najib's personal bank accounts.

Court cases linked to the scandal are still ongoing in various jurisdictions. In mid-March, Malaysian authorities said they recovered $322 million from the fund, a fraction of the fraud's value estimated at $4.5 billion.

Edmond de Rothschild did not want to comment on the CSSF's decision suspending Marc Ambroisien saying it was "a decision taken on an individual and personal basis".

https://luxtimes.lu/luxembourg/40271-regulator-suspends-rothschild-ex-ceo-for-ten-years