Standard Chartered Sued for $2.7 Billion Over Alleged 1MDB Money Laundering Role

Standard Chartered Plc, as per the reports, is facing a $2.7 billion lawsuit in Singapore over alleged involvement in transactions linked to Malaysia’s 1MDB fund. The case has been filed by liquidators acting on behalf of three companies connected to the scandal.

Details of the Allegations

The lawsuit claims the bank allowed over 100 intrabank transfers between 2009 and 2013. These transfers allegedly helped conceal the movement of misappropriated funds. The liquidators say this resulted in losses of over $2.7 billion and S$20 million ($15.7 million) in public money.

Standard Chartered has said it has not received official documents related to the claim. It rejected the allegations, stating that the 1MDB-linked accounts were closed in 2013 and that it had reported relevant transactions to authorities.

Prior Enforcement 

In 2016, Singapore’s central bank fined Standard Chartered S$5.2 million for anti-money laundering failures tied to 1MDB. The penalty was linked to lapses in customer due diligence and monitoring controls.

Funds involved in the transfers reportedly reached accounts connected to former Malaysian Prime Minister Najib Razak, who is serving a prison sentence related to the 1MDB case. The liquidators also linked the transfers to purchases of luxury goods for Najib’s family.

Global Investigations

As per news reports, the 1MDB case has triggered investigations in at least 6 countries. Authorities in the U.S. estimate that more than $4 billion was stolen from the fund. The scandal has resulted in multiple convictions and fines across several banks and financial institutions.

Malaysia has recovered nearly 29 billion ringgit (approx. $6.92 billion) in assets linked to 1MDB as of February 2024. Recovery efforts continue through both legal action and global cooperation.

Read more: Standard Chartered under RBI Review for Derivatives Sales and Risk Control Lapses!

Conclusion

The lawsuit is part of ongoing efforts to recover billions allegedly misappropriated from 1MDB between 2009 and 2014. Legal proceedings are underway in Singapore, with Standard Chartered named in the latest action. Authorities in multiple countries continue to investigate related transactions and entities. 

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