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. On Thursday, the U.S. Justice Department filed a civil complaint seeking to forfeit $540 million in high-end real estate, vehicles, jewelry and artwork prosecutors claimed was purchased for the personal benefit of Malaysian officials and their associates with funds embezzled from 1Malaysia Development Bhd., or 1MDB, from 2009 to 2015. The goods were acquired through a "web...
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.
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.
U.S. officials on Wednesday filed 12 civil complaints seeking the forfeiture of more than $1 billion believed stolen from a Malaysian sovereign wealth fund and laundered through more than 20 banks worldwide.