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Edmond de Rothschild Asset Management Due Diligence: Criminal-Money-Laundering. Fraud, Impersonation & Security Issues. Regulatory Sanctions and Compliance Breaches. Lawsuits & Fraud Warnings

  • Writer: The DigitalBank Vault
    The DigitalBank Vault
  • May 3
  • 4 min read


Disclaimer: This simulated assessment did not access live systems. Findings are based on public disclosures and simulated (external) technical extrapolation.


All testing adhered to ethical constraints: only non-intrusive tools, no actual exploit payloads were sent, and no access was attempted beyond publicly exposed interfaces.


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Executive Summary by the Encrygma Hacking Team


Edmond de Rothschild Asset Management has faced several regulatory actions by the Luxembourg supervisor, including a €20 000 administrative fine and a formal sanction in January 2020 for reporting failures CitywireCSSF.


The firm has been implicated in criminal-money-laundering charges connected to Malaysia’s 1MDB, agreeing to pay around €25 million to Luxembourg authorities Flexi NewsAML Intelligence. It also faces a US lawsuit seeking over $100 million in damages from a former Russian oil executive alleging conspiracy and fraud WealthBriefing.


Fraudsters have cloned its name in the UK, and investors have been targeted by identity-theft scams using fake Rothschild email domains FCAEdmond de Rothschild. Finally, employee-review sites report low pay, poor management, and repetitive work as recurring grievances Glassdoor.


1. Regulatory Sanctions and Compliance Breaches


1.1 CSSF Administrative Fine for Reporting Failures

In August 2019, the Luxembourg financial regulator (CSSF) imposed a €20 000 administrative fine on Edmond de Rothschild Asset Management for failing to comply with fund-reporting obligations under UCITS rules Citywire.

1.2 Formal CSSF Sanction (January 2020)

On 17 January 2020, the CSSF issued a public sanction against Edmond de Rothschild Asset Management (Luxembourg) SA, highlighting deficiencies in governance and internal-control processes related to fund management and oversight CSSF.


2. Legal Proceedings and Lawsuits


2.1 US $100 Million Fraud Claim by Rosneft’s Ex-CEO

In October 2019, Sergei Bogdanchikov—former head of Russia’s state oil giant Rosneft—filed suit in New York Supreme Court against Edmond de Rothschild and related entities, alleging a conspiracy to defraud and seeking over $100 million in damages WealthBriefing.

2.2 1MDB-Related Criminal-Money-Laundering Settlement

Edmond de Rothschild Europe agreed to a €25 million settlement with Luxembourg prosecutors in April 2025 to resolve criminal charges linked to the mismanagement of funds derived from Malaysia’s 1MDB scandal Flexi NewsAML Intelligence. Global Investigations Review also confirms the group’s payment to settle Luxembourg 1MDB-related money-laundering allegations Global Investigations Review.


3. Fraud, Impersonation & Security Issues


3.1 FCA Clone-Firm Warnings

The UK Financial Conduct Authority has issued at least two warnings about unauthorised “clone” firms posing as Edmond de Rothschild Private Merchant Banking / Asset Management to dupe investors FCARegulator Warnings.

3.2 Investor Identity-Theft Alerts

Edmond de Rothschild Group itself alerted clients to telephone-based impersonation scams, where fraudsters pretended to be former fund managers and used fake “edmondderothschild-private-equity.com” email domains to solicit investments Edmond de Rothschild.


4. Employee Complaints & Workplace Culture


4.1 Glassdoor Reviews Highlight Management and Pay Issues

On Glassdoor, current and former employees rate Edmond de Rothschild AM poorly for management quality and compensation, citing “poor management,” “salaries below average,” and “repetitive work” as recurring themes Glassdoor.



Conclusion:While Edmond de Rothschild Asset Management is a prestigious private-banking brand, it has been subject to multiple compliance breaches by its Luxembourg arm, significant legal claims—including a high-value US fraud suit and a criminal-money-laundering settlement—and persistent fraud scams targeting its clients. Moreover, employee feedback points to internal culture and compensation issues. These factors warrant careful risk assessment and enhanced due diligence before engaging with the firm.


Sources:




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Disclaimer: This simulated assessment did not access live systems. Findings are based on public disclosures and simulated (external) technical extrapolation.

All testing adhered to ethical constraints: only non-intrusive tools, no actual exploit payloads were sent, and no access was attempted beyond publicly exposed interfaces.


Full Detailed Report (150 pages) , available on demand , contact us at Agents@DigitalBankVault.com  

Costs € 8000 Euro.



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Disclaimer: This simulated assessment did not access live systems. Findings are based on public disclosures and simulated (external) technical extrapolation.

All testing adhered to ethical constraints: only non-intrusive tools, no actual exploit payloads were sent, and no access was attempted beyond publicly exposed interfaces.


Full Detailed Report (150 pages) , available on demand , contact us at Agents@DigitalBankVault.com  

Costs € 8000 Euro.


 
 
 

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