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Finma finds Rothschild Bank in 'serious breach' of AML rules

Finma finds Rothschild Bank in 'serious breach' of AML rules

Finma has found Rothschild Bank and its subsidiary, Rothschild Trust (Schweiz), to be in 'serious breach' of anti-money laundering rules during its investigation into the 1MDB scandal. 

Finma said the firms were in breach of due diligence, reporting and documentation requirements relating to business relationships and transactions involving Malaysian sovereign wealth fund 1MDB. 

Specifically, Finma said in a statement: 'Finma found that the bank and a subsidiary operating in the trust business had failed to clarify adequately the origin of assets in a significant business relationship.

'Although there were early indications that this client could be involved in money laundering activities, the institutions decided nevertheless to enter into the relationship and at a later stage considerably expand it.'

Finma also noted that Rothschild & Co and its subsidiary reported suspicions of money laundering only after a 'substantial delay'. 

Other institutions found to have committed serious breaches in the 1MDB proceedings have included J.P. Morgan (Switzerland), BSI, Falcon Private Bank and Coutts & Co.

Finma has concluded its investigation into 1MDB and is overseeing measures taken by the institutions involved to improve compliance.

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