Search Mark
Home / Industry Dynamics

Malaysia Considers Legal Action In 1MDB Graft Scandal 

Today’s News 

Malaysia is considering legal action against foreign banks involved in the 1MDB scandal. 

Image Source: Nikkei Asia
Malaysia is considering legal action against foreign banks involved in the 1MDB scandal. 
Image Source: Nikkei Asia 

Malaysia is contemplating legal action against foreign banks implicated in the massive 1Malaysia Development Berhad (1MDB) corruption scandal, according to Datuk Seri Johari Abdul Ghani, the chairman of the 1MDB asset recovery task force.  

Ghani, while refraining from naming the specific banks, emphasized their failure to conduct adequate due diligence in facilitating fund transfers related to the scandal. The corruption scandal, which involved an estimated USD 4.5 billion stolen from 1MDB, has implicated figures such as former Malaysian Prime Minister Najib Razak, Goldman Sachs staff, and high-ranking officials elsewhere. 

Najib Razak is currently serving a 12-year jail sentence for his role in what has been deemed the largest financial scandal in Malaysia’s history. In a statement, Johari mentioned that “The 1MDB task force is firmly committed in addressing the 1MDB matter transparently and holding all parties accountable.”  

In a separate development, Malaysia has responded to an arbitration request by Goldman Sachs on November 8, with negotiations underway to establish a procedural timetable. 

Despite Goldman Sachs agreeing in 2020 to a USD 3.9 billion settlement in Malaysia’s criminal probe, disagreements have arisen, particularly regarding a stipulation that the bank should make an interim payment if Malaysia fails to recover at least USD 500 million from Goldman by August 2022.  

The situation escalated when Goldman sued Malaysia in a British court, accusing the Malaysian government of breaching settlement obligations and seeking to reclaim other assets totaling USD 1.4 billion. Malaysia denies any breaches of the settlement deal. 

Other News

China Considers USD 278B Rescue For Stock Market 

Chinese authorities are exploring a rescue plan involving 2 trillion yuan (USD 278.53 billion) from state-owned enterprises’ offshore accounts to stabilize the slumping stock market.  

Citigroup Navigates Shifting Landscape With China License 

Citigroup’s recent approval for an investment banking license in China comes amid evolving conditions, with global banks facing challenges in the country’s investment banking sector. 

Cantor Fitzgerald’s Lutnick Challenges CME With New Futures Exchange 

Howard Lutnick, CEO of Cantor Fitzgerald, receives regulatory approval for FMX Futures Exchange, aiming to compete with CME Group in the interest-rate futures market.  

Share to

Industry Dynamics

Vietnamese Property Tycoon On Trial For USD 12B Fraud 

Today’s News  The trial has commenced for Vietnamese real estate tycoon Truong My Lan, accused of a staggering USD 12 billion fraud, marking a significant chapter in Vietnam’s extensive anti-corruption initiative led by the ruling Communist party. The case, which implicates officials from both the central bank and government, could result in a death sentence or […]

2024-3-5 | Industry Dynamics

U.K.'s Largest Pension Fund Warns Against Government Reforms 

Today’s News  The chief executive of the Universities Superannuation Scheme, the U.K.’s largest private sector pension scheme, has cautioned against excessive government intervention in managing retirement funds.   Carol Young, leading the GBP 73 billion (USD 92 bn) scheme, expressed her support for new disclosure requirements on U.K. investments but raised concerns about potential ministerial […]

2024-3-4 | Industry Dynamics

Weekly Economic Calendar For March 4th, 2024 – March 8th, 2024

Weekly Economic Calendar For March 4th, 2024 – March 8th, 2024.

2024-3-1 | Industry Dynamics