Standard Chartered hit with $2.7bn lawsuit over 1MDB scandal

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The chilters trying to recover billions of dollars, which were initially stored from the sovereign wealth fund in Malaysia, are seeking more than $ 2.7 billion from Standard Chartard, in a lawsuit against the bank, which is located in the UK for its alleged role in the scandal.

The lawsuit, raised in Singapore, on Monday, represents the last attempt to recover the funds taken from 1MDB As part of a decade -long hunt that included many of the largest banks in the world.

The issue against Stanchart It relates to billions of dollars that were washed after 1MDB. The lawsuit argues that the lender failed to make the expected money laundering operations, according to people who have knowledge of the claim.

Singapore’s organizer has already imposed sanctions on Stancart due to anti -money laundering failures.

Prosecutors claim that between 2009 and 2013, Stancart allowed more than 100 bank transport operations, which helped hide the stolen money flow. They argue with several red flags that have been ignored.

In a statement made to the Financial Times, the bank said it has not yet received the claim documents. She said that she “categorically rejects any claims” made by 1MDB companies, adding that the liquidators have publicly stated that they are “shelling companies with no legitimate work.”

The bank said: “Any claims from these companies without merit and Standard Chartard will strongly defend any lawsuit that the liquidators begin.” Stancart added that it has made “large investments” in controls and standards of anti -money laundering.

The looting of the sovereign wealth fund in Malaysia has decreased as one of the largest fraud in all times. Investigators in the United States claim that at least $ 4.5 billion in the fund has been stolen through several schemes Malaysian financier Jho LowHe is still generally but keeps his innocence.

The fraud also led to the prosecutor of the Prime Minister in Malaysia at the time, Naguib Razzaq. I am convicted and he was finally sentenced to six years imprisonment. It also included many of the largest banks across the United States, Europe and Asia.

Last month, Tim Lesnar, a former banker in Goldman Sachs, was at the heart of the case, He was sentenced to two years in prison In prison by the Federal Court of Brooklyn.

Candidates of the Kroll Financial Services Company, which coordinates 1.MDB recovery efforts, set more than $ 2.7 billion that flowed through Stancart accounts, including Naguib’s payments and purchasing jewelry and luxury goods for his family members, according to the people who have been informed of the lawsuit.

The financial system in Singapore was a major channel from Malaysia to the rest of the world in the 1MDB scandal. This caused embarrassment in the city of the city, which has long been proud of as a center of stability and the rule of law. The case led to strict rules to combat money laundering for banks.

In 2016, the Singapore Monetary Authority fined Stancart with a value of $ 5.2 million ($ 4 million) after an investigation into fraud in 28 violations on the bank of combating money laundering requirements at the Organized Bank between 2010 and 2013.

The organizer said at that time: “The inspection revealed major lapses in the due care measures in the bank’s due care, which led to many MAL regulations for the MAS regulations.”

“The lapses that stem from the shortcomings of policies and procedures, and the insufficient of independent supervision of the employees of the front office, and the lack of awareness of the dangers of money laundering between some bank employees.”

While MAS said it did not find deliberate misconduct by Stanchart, it ordered the bank to take disciplinary measures against the employees who failed to perform their duties.

Stancart was one of many banks that were investigated and fined by MAS More than 1MDB. Others included the local branch of Swiss Lander UBS and DBS Bank.

Several executives of the Singapore Bank were imprisoned and fined for their involvement in the case.

Stanchart is fighting a separate London suit of 1.5 billion pounds for allegations that sanctions against Iran were more prevalent than it recognized. The bank failed in An attempt in March To narrow the claim.

The bank has settled fees on the Iran issue in 2019 by agreeing to pay the regulatory authorities in the United Kingdom and the United States $ 1.1 billion.