A $2.7bn lawsuit against Standard Chartered over its alleged role in the 1MDB scandal will go to trial after the Singapore High Court rejected the lender\u2019s application to strike out the suit.<\/p>\n
The legal proceedings were brought by liquidators on behalf of three companies currently in liquidation: Alsen Chance Holdings, Blackstone Asia Real Estate Partners and Brightstone Jewellery. They are seeking to hold the UK-headquartered bank accountable for its role in allegedly enabling fraud to be committed against 1MDB, Malaysia\u2019s sovereign wealth fund.<\/p>\n
The liquidators said in a statement: \u201cThis outcome reaffirms that the claims against the bank, including claims of dishonest assistance and breach of the bank\u2019s duties of reasonable skill and care, should properly proceed to trial, where the evidence can be fully examined.\u201d<\/p>\n
The suit, initially filed in Singapore last summer, represents the latest attempt to recover money taken from the Malaysian fund. The case against Standard Chartered relates to the billions of dollars that were laundered after their misappropriation from 1MDB. According to the FT, the suit argues the lender failed to conduct adequate anti-money laundering checks. <\/p>\n
The raid on Malaysia\u2019s wealth fund has been heralded as one of the biggest frauds of all time. Investigators in the US suggest that $4.5bn as a minimum was stolen from the fund through several schemes operated by Malaysian financier Jho Low, who remains at large but maintains his innocence.<\/p>\n
The fraud also led to the prosecution of Malaysia\u2019s then prime minister, Najib Razak. He was convicted and sentenced to 12 years in prison, which was halved to six in 2024.<\/p>\n