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.
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