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.
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.