Singapore court rejects 1MDB-linked suit against Standard Chartered, BSI

Singapore’s High Court has dismissed a bid by foreign liquidators to sue Standard Chartered Bank and BSI Bank in the city state over transactions alleged to be linked to the scandal-hit Malaysian sovereign wealth fund 1MDB, according to a judgment on Wednesday.

Representatives of the liquidators did not immediately respond to a request for comment. Standard Chartered said the bank welcomed the court’s decision.

Liquidators began legal proceedings against the London-headquartered bank in Singapore, according to a statement from July, with the claimants alleging Standard Chartered permitted more than 100 intrabank transfers between 2009 and 2013 that helped to conceal the flow of stolen funds.

Those transfers led to the loss of more than US$2.7 billion for the claimants, as well as S$20 million (US$15.5 million) in public funds, according to the liquidators.

US and Malaysian investigators say about US$4.5 billion was stolen from the 1Malaysia Development Berhad state fund between 2009 and 2014 in a complex, globe-spanning scheme.

Global investigations led to the imprisonment of ex-Goldman Sachs Group executives and former Malaysian prime minister Najib Razak. Malaysian financier Jho Low is still a fugitive.

  

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