The Commission de Surveillance du Secteur Financier (CSSF) has imposed an administrative penalty on the Edmond de Rothschild bank in Europe.
As part of the exercise of its statutory duties as a supervisory authority, the CSSF imposed, on 21 June 2017, an administrative penalty in the form of a fine of €8,985,000 against the bank Edmond de Rothschild (Europe).
The fine was imposed on the basis of Article 63 of the law of 5 April 1993 on the financial sector, on the basis of failing to implement a strong internal governance system covering, in particular, compliance policy and compliance by banks to the fight against money laundering and the financing of terrorism.
The sanction was decided following an in-depth survey and monitoring carried out by the CSSF throughout 2016. The CSSF received the observations of the bank Edmond de Rothschild in March 2017, including a remedial plan in order to respond to the complaints found by the CSSF and on which the abovementioned administrative penalty is based.
The CSSF has noted that since June 2016 the Edmond de Rothschild bank has strengthened and substantially changed its management teams and launched a process to bring its internal governance into conformity as described in its remediation plan. These positive initiatives by the bank Edmond de Rothschild were taken into account by the CSSF in determining the amount of the fine.
The CSSF, as the supervisory authority, will ensure that Edmond de Rothschild (Europe) is in continuous compliance with the regulations in force and the implementation of remedial plan measures and their proper application in practice.
