Singapore Court Allows $2.7 Billion Lawsuit Against Standard Chartered in 1MDB Case

A Singapore High Court decision has enabled liquidators pursuing 1MDB-related recoveries to proceed with a $2.7 billion lawsuit against Standard Chartered Bank, as per Reuters. The court dismissed the bank’s attempt to strike out the case, which was filed in June by liquidators seeking to reclaim funds lost through the long-running 1MDB fraud.  

They described the ruling as a “significant legal victory” and said it strengthens their efforts to recover assets for Malaysia. U.S. investigations have previously estimated that about $4.5 billion was diverted from 1MDB between 2009 and 2014. 

Allegations and Bank Response 

According to the liquidators, three companies in liquidation linked to 1MDB allege that Standard Chartered facilitated more than 100 intrabank transfers between 2009 and 2013, masking the flow of misappropriated funds and ignoring warning signs.  

Some funds routed through the bank were claimed to have been transferred to the personal account of former Malaysian Prime Minister Najib Razak, who is serving a six-year sentence for graft tied to the scandal.  

Standard Chartered said it disagrees with the ruling and will file an appeal, adding that the claims are “without merit”. The bank stated that it had reported the activities of these companies before closing their accounts in early 2013 and emphasised its commitment to combating financial crime. 

Global Investigations and Recovery Efforts 

The lawsuit forms part of a broader international effort, with at least six countries including Singapore and Switzerland investigating 1MDB transactions. Malaysia has recovered 29 billion ringgit ($7.01 billion) in assets from 2019 to February 2024.  

Singapore’s central bank had earlier imposed S$5.2 million in penalties on Standard Chartered’s local unit in 2016 for breaches linked to the case. The liquidators did not immediately respond to the bank’s counterclaims. 

Read More: ACC Approves New Executive Directors Across 7 Public Sector Banks, Including PNB, Central Bank & More! 

Conclusion 

The court’s decision marks another step in the extensive global pursuit of 1MDB-related funds. As the case proceeds, scrutiny of alleged financial misconduct and recovery efforts across jurisdictions remains ongoing. 

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