Switzerland's prosecutor revealed the status of its 1MDB investigation, which has languished due to disinterest from Malaysia – until now.
Switzerland is investigating six people and two banks as part of the Swiss end of a six-country probe into what U.S. prosecutors believe is a $4.5 billion corruption scheme in Malaysia, the Swiss attorney general said in a statement on Tuesday.
The statement followed a meeting between Michael Lauber and Tommy Thomas, Swiss and Malaysian Attorney Generals, respectively, in Putrajaya to discuss how the two countries can better cooperate to root out wrong-doing at 1MDB, a state fund set up for development.
Heady Progress
The meeting between Lauber and Thomas yielded little besides a mutual commitment to keep working together, but it is hugely significant because it follows more than two years of Malaysian indifference on 1MDB.
«The main emphasis in the discussions during the official work visit was laid on the need to affirm a mutual commitment to the rule of the law and the resumption of mutual legal assistance between the two jurisdictions», Switzerland's prosecutor said.
Their meeting comes against the backdrop of a heady two months in Malaysia: Prime Minister Najib Razak was voted out, then arrested by officials appointed by his former mentor and now successor; a former Goldman Sachs banker and rainmaker of 1MDB deals succumbed to U.S. prosecutors; and Malaysian officials pinpointed the whereabouts of Jho Low, a Malaysian financier who prosecutors believe played a key role in pulling off the alleged fraud.
Assets Frozen
Switzerland didn't name any of the individuals, two of whom were linked to 1MDB, and two ex-United Arab Emirate officials who oversaw Abu Dhabi sovereign wealth funds, and two Petrosaudi executives. The prosecutor said ex-PM Najib, who faces charges of criminal breach of trust and corruption at home, is not under investigation.
By contrast, banks Banca della Svizzera Italiana, or BSI, and Falcon Private Bank are in the crosshairs. BSI was midway through a takeover by EFG International, since concluded, when the scandal hit. Falcon has struggled to reinvent itself, and has been plagued with high-level exits in recent months, as finews.asia reported.
Switzerland's prosecutor didn't disclose how much in assets the country has frozen due to ties to 1MDB. Prosecutors believe Low and others embezzled the 1MDB funds to use for everything from luxury real estate to diamonds for his model girlfriend to bankrolling a Hollywood blockbuster.
