Malaysian authorities are considering legal proceedings against foreign banks linked to the 1MDB scandal, in the latest escalation of the country’s headline case.
Legal proceedings against foreign banks linked to the 1MDB scandal, with an estimated $4.5 billion stolen, are being considered by Malaysian authorities. No lenders were named but they were accused of not conducting proper due diligence before facilitating related fund transfers.
«The 1MDB task force is firmly committed in addressing the 1MDB matter transparently and holding all parties accountable,» said a statement by Johari Abdul Ghani, chairman of the 1MDB asset recovery task force.
Goldman Case
Meanwhile, Malaysia is also facing accusations by Goldman Sachs that it breached a settlement deal involving $3.9 billion, including an interim payment if a minimum of $500 million was not recovered from the bank by August 2022. Goldman sued Malaysia in a British court in October last year, claiming a violation of its obligation to appropriately credit assets. Malaysia has denied the allegations.
According to Johari, Malaysia responded to an arbitration request by Goldman on November 8 and the two parties were in the process of agreeing on a procedural timetable.
