Compliance

US Intends To Reimburse Malaysia Over 1MDB Scandal - Report

Editorial Staff May 3, 2019

US Intends To Reimburse Malaysia Over 1MDB Scandal - Report

The development is an example of how the 1MDB scandal in Malaysia has spread its net worldwide.

US authorities are preparing to return about $200 million of funds allegedly misappropriated from embattled state fund 1MDB to Malaysia, Bloomberg reported, citing unnamed sources.

The figure includes about $140 million from the sale of a stake in New York’s Park Lane Hotel and some $60 million from a settlement paid by the producer of the “Wolf of Wall Street” movie, according to two people cited by the news service. The transfer could happen as soon as next week, they said.

The web of financial transactions involving the Malaysian fund has spread to the US, Singapore, Switzerland and other nations. The scandal has led to banks being ejected by regulators from Singapore, for example, and contributed to worries that money laundering is a major risk that wealth managers must understand.

Malaysian Prime Minister Mahathir Mohamad has reached out to countries for help in tracking and recouping the $4.5 billion believed to have been taken from 1MDB. Former Malaysian prime minister Najib Razak and Goldman Sachs have been embroiled in the scandal.

The news report said that representatives of the US Justice Department did not immediately respond to a request for comment yesterday.

A US court has made an order on a plane that is parked in Singapore, the jurisdiction’s police told the news service.

Register for FamilyWealthReport today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes