An attempt to strike out a legal claim by 1MDB against the now-defunct BSI Bank in Singapore has failed.
Singapore’s high court has dismissed an application by the now-defunct BSI Bank to strike out a $394 million claim against it by 1MDB and its unit, Brazen Sky Limited, according to a statement by the Malaysian fund.
«We are pleased this application has been denied and are committed to holding accountable the institutions and individuals involved in misappropriating money from Malaysia’s sovereign wealth fund, while ensuring the recovery and restitution of these assets back to the Malaysian people,» a spokesperson for 1MDB's board said.
Assisting in Misappropriation
According to 1MDB, BSI and several of its former officers allegedly facilitated unauthorized fund transfers, assisting in the misappropriation of 1MDB's assets. The case against BSI, which commenced in May, will now proceed.
Three ex-BSI bankers have previously been convicted in Singapore in relation to the 1MDB scandal.
BSI was acquired by Zurich-based private bank EFG in 2016 which led to the closure of its Singapore branch.
