Zurich — Rothschild Bank and one of its subsidiaries were found to have seriously breached money-laundering rules in the multi-billion-dollar 1MDB Malaysian corruption case, which has ensnared lenders around the world. Swiss financial regulator Finma said on Friday that it will appoint an outside auditor to review controls put in place by the bank and its Rothschild Trust (Schweiz) unit. The decision wraps up the last of seven investigations by the authority relating to Swiss banks and the Malaysian state investment company. Finma found that the bank entered into, then expanded, a "significant business relationship" with an unnamed client in relation to the 1MDB corruption scandal, even though there were indications that money laundering might be involved. Still, Rothschild Bank has taken steps to improve compliance and the Swiss regulator stopped short of imposing a fine. Rothschild Bank told Bloomberg it received notice of Finma’s decision and that the group "acknowledge and regre...

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