The latest move by U.S. officials to confiscate hundreds of millions of dollars in assets believed tied to the theft of a now-estimated $4.5 billion from a Malaysian state fund further outlines how the money was first siphoned, then routed through global banks.
The embezzlement of more than $3 billion from 1Malaysia Development Bhd. has drawn new attention to the risk of banking sovereign wealth funds, leaving financial institutions that manage their accounts increasingly exposed to enforcement at home and overseas.
Looking for a loan to intermingle your illicit proceeds with legitimate funds or grow your front company without the hassle of answering a lot of questions? Try an obscure and loosely regulated non-bank lender.
Singapore will step up its supervision of financial institutions in light of allegations that banks in the city-state processed transactions linked to the embezzlement of billions of dollars from Malaysia.
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