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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,...