Authorities in Luxembourg hope Malaysia’s new government may offer new information on some US$100 million from investment fund 1MDB that Luxembourg froze two years ago in a money-laundering probe, judicial sources told Reuters.

Confirming for the first time on Friday that such a sum had been blocked in the Grand Duchy after Swiss private bank Edmond de Rothschild was fined one year ago over money-laundering, the sources said that Luxembourg was keen to pursue inquiries now the new government is looking into troubles at the state fund.

Days after the electoral downfall of the long-time ruling coalition and of premier Najib Abdul Razak, new prime minister Dr Mahathir Mohamad has pushed an investigation into scandal-plagued 1MDB, amid accusations Najib benefited from money from a former entity of the state investment firm.

Najib denies wrongdoing.

In June 2017, Edmond de Rothschild and Luxembourg officials said the bank was fined nearly €9 million (US$10.60 million) for shortcomings in money-laundering controls.

On Friday, the Luxembourg sources said that authorities froze US$100 million in the case a year earlier but had not until now been able to determine what to do with the funds due to a lack of information from Malaysia. 

- Reuters