Malaysian liquidators sue Standard Chartered in Singapore, alleging its role in 1MDB fraud
Malaysian liquidators are suing Standard Chartered in Singapore, claiming the bank ignored red flags and suspicious transfers, a claim the bank strongly denies
Liquidators for Malaysia’s sovereign wealth fund 1MDB have sued Standard Chartered Bank in Singapore, alleging it enabled fraud that led to more than US$2.7 billion in financial losses more than 10 years ago.
Standard Chartered, the UK-headquartered bank in Singapore, on Tuesday said that it emphatically rejected the claims.
The move is the latest in a wide-ranging effort to recover money belonging to 1Malaysia Development Berhad (1MDB), from which US investigators say about US$4.5 billion was stolen between 2009 and 2014 in a complex, globe-spanning scheme.
Malaysian authorities have previously said there were billions of dollars more that were unaccounted for.
Liquidators from financial services firm Kroll, which filed the lawsuit in the High Court of Singapore, said in a statement on Monday they were seeking to hold Standard Chartered accountable for its role in allegedly enabling fraud to be committed against 1MDB.
Three companies in liquidation linked to 1MDB say Standard Chartered permitted over 100 intrabank transfers between 2009 and 2013 that helped conceal the flow of stolen funds.