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. In July, federal prosecutors in New York and Los Angeles issued civil complaints seeking title over more than $1 billion of U.S.-based assets they said were bought under the names of shell companies with money stolen from the fund, which is also called 1MDB, and wired through corporate accounts at more than a dozen banks. The complaints, which describe how JPMorgan Chase,...
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.
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.