1Malaysia Development Berhad (1MDB)

History

2021

Malaysian State Investment Fund 1MDB sues JPMorgan, Coutts and Deutsche Bank

On May 10, 2021, it became known that Malaysian state the investment fund 1Malaysia Development Berhad (1MDB) filed a lawsuit Kuala Lumpur against, and German Deutsche Bank American JPMorgan British Coutts. The Investment Fund accuses of " banks negligence, breach of contract, conspiracy to fraud and damage and/or complicity in unfair acts." 1MDB seeks compensation in the amount of $1.1 billion from the Malaysian division of Deutsche Bank, $1 billion from Swiss the Coutts division and $800 million from the Swiss division of JPMorgan.

1MDB was at the center of a large-scale corruption scandal in 2015, which ultimately led to the collapse of the investment fund. Then, during the inspection of his activities, debts of $11 billion were revealed. The investigation revealed corruption schemes involving senior Malaysian officials, $700 million of this amount was found in the personal accounts of then-Prime Minister of Malaysia Najib Razak, part of the state fund went to bribes to foreign officials.

In October 2020, Hong Kong fined Goldman Sachs Bank $350 million for omissions and insufficient fight against money laundering in connection with 1MDB. In total, 1MDB seeks to recover $23 billion in assets.^[1]

Deloitte to pay $80 million to Malaysian authorities due to 1MDB audit violation

In early March 2021, Deloitte agreed to pay the Malaysian government 324 million ringgit ($80 million) to resolve all claims related to the audit of the 1MDB investment fund and its former SRC International division from 2011 to 2014. The fund was supposed to attract investment in the country, but instead became the center of many investigations into corruption and money laundering. More details here.

Notes