How Malaysia’s 1MDB Fund Scandal Reaches Around the World

The biggest of alll bulls...

How Malaysia’s 1MDB Fund
Scandal Reaches Around the World.

USA / Switzerland / Luxemborg / United Kingdom / UAE/Thailand/ Hong Kong /Singapore/Australia


State investment company 1Malaysia Development Bhd., or 1MDB, has been making headlines in Malaysia and around the world in the past year, mainly for the wrong reasons. There are probes reported in at least ten countries related to 1MDB, or on companies and individuals linked to it.

Investigations surrounding 1MDB center on alleged financial irregularities and possible money laundering. Both 1MDB and Prime Minister Najib Razak have consistently denied wrongdoing, and the fund continues to state that no foreign legal authorities have contacted them on any of these investigations. Here's a snapshot of the various probes.

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National Team Involved in the Investigation.

Malaysia

Probes

• Political Donations to Najib
  Najib has faced questions over $681M that appeared in his accounts before the 2013 election. The Attorney General cleared Najib of any wrongdoing in January after investigations by the Malaysian Anti-Corruption Commission. READ MORE
• Central Bank Found Inaccurate Disclosures
  The central bank said it found inaccurate disclosures by 1MDB when it sought approvals for investments abroad. It also proposed criminal proceedings against the fund, calls that were dismissed by the attorney general. The central bank said in March it will pursue "appropriate administrative enforcement action." READ MORE
• Committee Blames Former 1MDB CEO
  The Public Accounts Committee on April 7 found poor oversight of the fund by its board of directors and recommended that investigations start against its former CEO, who subsequently denied wrongdoing and defended his actions at the company. READ MORE

Investigating Agencies

• Attorney General’s Office of Malaysia
• Auditor General’s Office of Malaysia
• Bank Negara Malaysia (central bank)
• Public Accounts Committee
• Malaysian Anti-Corruption Commission
• Police

Singapore

Probes

• Singapore Investigates Possible Money Laundering
  Singapore is conducting a thorough review of possible money laundering related to 1MDB. In February, it said it seized “a large number” of bank accounts. READ MORE
• BSI Senior Private Banker’s Accounts Frozen
  A senior private banker at BSI, a relationship manager for a 1MDB unit, had his bank accounts frozen and was questioned in a probe related to 1MDB. Neither BSI nor its staff have been charged by regulators in the city-state. READ MORE
• Singapore Assists Swiss
  The Singapore Attorney General’s office said it received a request for legal assistance from its Swiss counterpart on a 1MDB probe and will render all possible help “expeditiously.” READ MORE

Investigating Agencies

• Monetary Authority of Singapore
• Commercial Affairs Department / Suspicious Transaction Reporting Office
• Singapore Attorney General’s Chambers

Switzerland

Probes

• Swiss Suspect $4B Fund Misuse
  Swiss authorities suspect money laundering and criminal mismanagement. They also found that a small amount of funds were transferred to Swiss accounts of former Malaysian public officials. Najib is not one of the public officials accused. READ MORE
• Finma in Contact With Four Banks
  The Swiss Financial Market Supervisory Authority (Finma) is in contact with four banks over their possible involvement in the Malaysian matter and whether Finma’s regulatory laws were respected. READ MORE
• The Emirates Connection
  The Swiss attorney general suspects money paid by 1MDB that was intended for an Abu Dhabi sovereign wealth fund benefited others, particularly two U.A.E. public officials that the Swiss are investigating for fraud, and a company related to the film industry.READ MORE

Investigating Agencies

• Attorney General of Switzerland
• Swiss Financial Market Supervisory Authority FINMA

United Kingdom

Probes

• Report: U.K. Said to Investigate
  The U.K. is said to be investigating 1MDB because of the involvement of U.K. banks, the International Business Times said in February. The Serious Fraud Office declined to comment. READ MORE

Investigating Agencies

• Serious Fraud Office

United States

Probes

• 1MDB Bond Proceeds
  U.S. prosecutors subpoenaed former Goldman Sachs banker Tim Leissner, who oversaw bond sales for 1MDB, about the Malaysian fund, said people familiar with the matter. READ MORE
• Other Investigations
  The Justice Department is investigating whether funds were embezzled from 1MDB by politically connected people in Malaysia. The Federal Bureau of Investigation is leading the probe and trying to determine if any U.S. laws were broken. READ MORE

Investigating Agencies

• FBI
• U.S. Department of Justice

Australia

Probes

• Report: Avestra Asset Management
  An Australian regulator has been pursuing Avestra Asset Management over corporate mismanagement and got a court to order several of its funds to be wound up, The Wall Street Journal reported. Court documents show Avestra is linked to Cayman Islands-based Bridge Global. 1MDB invested $2.3B of funds via the Bridge Global Absolute Return Fund SPC. READ MORE

Investigating Agencies

• Australian Securities & Investments Commission

Hong Kong

Probes

• Report: Police Investigating
  In September, Hong Kong police said they were looking into deposits allegedly linked to Najib, a claim denied by the Malaysian government, according to the Financial Times. The police said in April that there are no updates to the case.

Investigating Agencies

• Police

Thailand

Probes

• Xavier Justo
  The former employee of PetroSaudi, a company that was linked to 1MDB, is said to have stolen e-mails from his former employer and used the correspondence to extort money. Xavier Justo was sentenced to three years jail in August 2015. Thai police say the case is now closed.

Investigating Agencies

• Police

Luxembourg

Probes

• “Concrete Clues” of Embezzlement
  In March, prosecutors in Luxembourg said they found “concrete clues” of embezzlement from companies owned by 1MDB via accounts in Singapore, Switzerland, and Luxembourg. READ MORE

Investigating Agencies

• District Tribunal of Luxembourg

United Arab Emirates

Probes

• Report: Former Abu Dhabi Fund Execs Investigated
  Two former executives of an Abu Dhabi sovereign wealth fund, which had dealings with 1MDB, were issued travel bans, The Wall Street Journal reported. They also had their personal assets frozen by the U.A.E. central bank amid embezzlement allegations. The central bank did not respond to an e-mail seeking comment. READ MORE

Investigating Agencies

• Unnamed Reg