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Singapore Law Watch
2 days ago
- Business
- Singapore Law Watch
1MDB saga: Standard Chartered Bank disputes $3.4 billion claim by liquidators in Singapore
1MDB saga: Standard Chartered Bank disputes $3.4 billion claim by liquidators in Singapore Source: Straits Times Article Date: 02 Jul 2025 Author: Grace Leong StanChart said it has not yet received the legal claim documents, and emphatically rejects any claims made by these companies. More than US$2.7 billion (S$3.4 billion) in alleged misappropriated funds is being sought from Standard Chartered Singapore (StanChart) in a High Court lawsuit filed by liquidators in the 1Malaysia Development Berhad (1MDB) saga. The suit, which represents the latest wide-ranging effort to recover funds siphoned from Malaysia's sovereign wealth fund 1MDB – from which US investigators claim about US$4.5 billion was stolen between 2009 and 2014 – was brought by court-appointed liquidators Angela Barkhouse and Toni Shukla from financial services firm Kroll. When asked by The Straits Times why the lawsuit was being brought at this juncture, a Singapore-based lawyer for the liquidators declined to comment. The suit, which was filed on June 30, seeks to hold StanChart accountable for its role in allegedly enabling fraud to be committed against 1MDB and the systematic theft of funds. Three companies in liquidation linked to 1MDB – Alsen Chance Holdings, Blackstone Asia Real Estate Partners and Brightstone Jewellery – alleged that between 2009 and 2013, StanChart permitted over 100 intra-bank transfers that helped conceal the flow of stolen funds and chose to overlook obvious red flags regarding these transfers. The suit claims that in doing so, the bank failed to comply with Singapore's anti-money laundering (AML) regulations and client due diligence rules. StanChart, in a statement on July 1, said: 'Any claims by these companies are without merit and Standard Chartered will vigorously defend any lawsuit commenced by the liquidators.' The suit claims that the three companies lost over US$2.7 billion and $20 million in public funds. StanChart, in response to ST's queries, said it has 'not yet received the legal claim documents, and emphatically rejects any claims made by these companies'. The liquidators who are making these claims have publicly stated that these companies were shell companies with no legitimate business and were linked to fugitives Low Taek Jho and his associate Eric Tan Kim Loong, StanChart said. They operated under false pretences, and acted as a conduit for funds misappropriated from 1MDB to launder monies, the bank said. According to the lawsuit, the transfers demonstrate serious breaches and control failings that ultimately enabled the theft of public funds by people operating at the highest levels of the Malaysian government during that period. The account held by Blackstone Asia Real Estate – a firm owned by Tan – allegedly disbursed US$150 million directly to the personal bank account of Najib Razak, the former prime minister of Malaysia who has since been jailed for corruption and money laundering. Some US$4.7 million was disbursed to jewellery, watch and bag vendors to pay for the luxury goods purchased by Najib's wife Rosmah Mansor. Another US$1 million allegedly went to Red Granite Pictures, a movie production and distribution company controlled by Rosmah's biological son Riza Aziz, to pay for movie development expenses, among other things. An account held by Alsen Chance Holdings disbursed US$53.4 million to jewellery, watch and bag vendors to pay for Rosmah's luxury goods purchases, and another US$38.75 million to Red Granite Capital. The account held by Brightstone Jewellery disbursed US$77.2 million to jewellery, watch and bag vendors to pay for Rosmah's luxury goods purchases. According to the suit, these amounts, along with the nature of the money flows, are evidence of how StanChart had failed to conduct the anti-money laundering safeguards. In 2016, the Monetary Authority of Singapore (MAS) imposed financial penalties of $5.2 million on StanChart and required that disciplinary action be taken against its officers who failed to perform their duties, following findings of significant lapses and serious regulatory breaches. A spokesperson for the 1MDB board said on July 1: 'The Malaysian people were the true victims of this global fraud, and all parties are determined to hold every facilitator to account – including financial institutions that failed in their most basic duties of vigilance and responsibility.' StanChart, in its statement, pointed out that the transactions at issue date back to 2010. 'We reported the transaction activities of these companies, both before and at the time we shut their accounts in early 2013, and fully cooperated with the investigating authorities,' it said. 'As set out in the MAS' December 2016 media release on the penalties on StanChart for 1MDB-related AML breaches, MAS concluded their inspection of StanChart in relation to 1MDB-related fund flows. 'While MAS identified regulatory breaches, the inspection did not find pervasive control weaknesses or wilful misconduct at Standard Chartered,' the bank said. 'Standard Chartered takes our responsibility to fight financial crime extremely seriously. We have made significant investments in strengthening our controls and uplifting our AML standards, and will continue to do so,' it added. Source: The Straits Times © SPH Media Limited. Permission required for reproduction. Print
The Star
2 days ago
- Business
- The Star
1MDB saga: Standard Chartered Bank refutes US$2.7bil claim by liquidators in Singapore
StanChart said it has not yet received the legal claim documents, and emphatically rejects any claims made by these companies. - Photo: ST file SINGAPORE: More than US$2.7 billion (S$3.4 billion) in alleged misappropriated funds are being sought from Standard Chartered Singapore (StanChart) in a High Court lawsuit filed by liquidators in the 1MDB saga. The suit, which represents the latest attempt to recover funds siphoned from 1MDB as part of a decade-long hunt involving several of the world's largest banks, was brought by court-appointed liquidators from financial services firm Kroll Angela Barkhouse and Toni Shukla. It seeks to hold StanChart accountable for its role in allegedly enabling fraud to be committed against Malaysia's sovereign wealth fund 1MDB and the systematic theft of funds. StanChart, in response to The Straits Times' queries, said it has not yet received the legal claim documents, and emphatically rejects any claims made by these companies. Three companies in liquidation linked to 1MDB alleged that between 2009 and 2013, StanChart permitted over 100 intrabank transfers that helped conceal the flow of stolen funds and chose to overlook obvious red flags regarding these transfers. The suit claims that in doing so, the bank failed to comply with Singapore's anti-money laundering (AML) regulations and client due diligence rules. The suit claims the three companies lost over US$2.7 billion and $20 million in public funds. The liquidators claim these companies were shell companies with no legitimate business and were linked to fugitives Low Taek Jho and his associate Eric Tan. They operated under false pretences, and acted as a conduit for funds misappropriated from 1MDB to launder monies. StanChart, in a statement on Tuesday (July 1), said: 'Any claims by these companies are without merit and Standard Chartered will vigorously defend any lawsuit commenced by the liquidators.' It added the transactions at issue date back to 2010. 'We reported the transaction activities of these companies, both before and at the time we shut their accounts in early 2013, and fully cooperated with the investigating authorities,' StanChart said. 'As set out in the Monetary Authority of Singapore's December 2016 media release on the penalties on StanChart for 1MDB-related AML breaches, MAS concluded their inspection of StanChart in relation to 1MDB-related fund flows. 'While MAS identified regulatory breaches, the inspection did not find pervasive control weaknesses or wilfull misconduct at Standard Chartered,' the bank said. 'Standard Chartered takes our responsibility to fight financial crime extremely seriously. We have made significant investments in strengthening our controls and uplifting our AML standards, and will continue to do so,' it added. - The Straits Times/ANN
Straits Times
2 days ago
- Business
- Straits Times
1MDB saga: Standard Chartered Bank refutes $3.4 billion claim by liquidators in Singapore
StanChart said it has not yet received the legal claim documents, and emphatically rejects any claims made by these shell companies. PHOTO: ST FILE SINGAPORE - More than US$2.7 billion (S$3.4 billion) in alleged misappropriated funds are being sought from Standard Chartered Singapore (StanChart) in a High Court lawsuit filed by liquidators in the 1MDB saga. The suit, which represents the latest attempt to recover funds siphoned from 1MDB as part of a decade-long hunt involving several of the world's largest banks, was brought by court-appointed liquidators from financial services firm Kroll Angela Barkhouse and Toni Shukla. It seeks to hold StanChart accountable for its role in allegedly enabling fraud to be committed against Malaysia's sovereign wealth fund 1MDB and the systematic theft of funds. StanChart, in response to The Straits Times' queries, said it has not yet received the legal claim documents, and emphatically rejects any claims made by these shell companies. Three companies in liquidation linked to 1MDB alleged that between 2009 and 2013, StanChart permitted over 100 intrabank transfers that helped conceal the flow of stolen funds and chose to overlook obvious red flags regarding these transfers . The suit claims that in doing so , the bank failed to comply with Singapore's anti-money laundering (AML) regulations and client due diligence rules. The suit claims the three companies lost over US$2.7 billion and $20 million in public funds. The liquidators claim these companies were shell companies with no legitimate business and were linked to fugitives Low Taek Jho and his associate Eric Tan. They operated under false pretences, and acted as a conduit for funds misappropriated from 1MDB to launder monies. StanChart, in a statement on July 1, said: 'Any claims by these companies are without merit and Standard Chartered will vigorously defend any lawsuit commenced by the liquidators.' It added the transactions at issue date back to 2010. 'We reported the transaction activities of these companies, both before and at the time we shut their accounts in early 2013, and fully cooperated with the investigating authorities,' StanChart said. 'As set out in the Monetary Authority of Singapore's December 2016 media release on the penalties on StanChart for 1MDB-related AML breaches, MAS concluded their inspection of StanChart in relation to 1MDB-related fund flows. 'While MAS identified regulatory breaches, the inspection did not find pervasive control weaknesses or wilfull misconduct at Standard Chartered,' the bank said. 'Standard Chartered takes our responsibility to fight financial crime extremely seriously. We have made significant investments in strengthening our controls and uplifting our AML standards, and will continue to do so,' it added. Join ST's WhatsApp Channel and get the latest news and must-reads.
Time of India
3 days ago
- Business
- Time of India
Standard Chartered faces $2.7 bn lawsuit linked to 1MDB scandal
Standard Chartered Plc is facing a $2.7 billion lawsuit from liquidators alleging it played a role in enabling the laundering of billions of dollars misappropriated from Malaysian sovereign wealth fund 1MDB, as per a Bloomberg report. The suit, filed in Singapore on Monday, represents the latest attempt to recover money taken from 1MDB as part of a decade-long hunt that has involved several of the world's largest banks Liquidators began legal proceedings against the UK-headquartered bank in Singapore, according to a statement released on Tuesday. In a statement given to the Financial Times, the bank said it had not yet received the claim documents. It said it 'emphatically rejects any claims' made by the 1MDB companies, adding that the liquidators had publicly stated they were 'shell companies with no legitimate business'. 'Any claims by these companies are without merit and Standard Chartered will vigorously defend any lawsuit commenced by the liquidators,' the bank said. StanChart added that it had made 'significant investments' in its anti-money laundering controls and standards. Standard Chartered had reported the transaction activities of the 1MDB companies, shut these accounts in 2013 and fully cooperated with the investigating authorities, the bank said. Live Events The claimants allege that Standard Chartered Bank permitted more than 100 intrabank transfers between 2009 and 2013 that helped to conceal the flow of stolen funds. Such transfers led to the loss of more than $2.7 billion for the claimants, as well as S$20 million ($15.7 million) in public funds, according to the liquidators' statement. One of the biggest frauds of all time The 1MDB scandal was one of the biggest financial frauds in history, with stolen funds estimated to have exceeded $4 billion. The fraud also led to the prosecution of Malaysia's prime minister at the time, Najib Razak. He was convicted and ultimately sentenced to six years in prison. It also involved several of the biggest banks across the US, Europe and Asia. Last month, Tim Leissner, the disgraced former Goldman Sachs banker at the heart of the affair, was sentenced to two years in prison by Brooklyn's federal court. Liquidators at financial services firm Kroll, which is coordinating the 1MDB recovery efforts, have identified more than $2.7bn that flowed through StanChart accounts, including payments to Najib and purchases of jewellery and luxury goods for his family members, according to people briefed on the lawsuit, as per an FT report. Singapore authorities imposed a S$5.2 million fine against Standard Chartered in 2016 for anti-money laundering breaches related to the case. Other banks were also fined.
Business Times
3 days ago
- Business
- Business Times
Standard Chartered faces US$2.7 billion lawsuit over alleged role in 1MDB fraud; bank ‘emphatically rejects' claims
[SINGAPORE] Liquidators seeking to recoup misappropriated funds from Malaysia's sovereign wealth fund 1Malaysia Development Berhad (1MDB) have initiated legal proceedings against Standard Chartered Bank in the High Court of Singapore, they said in a statement dated Monday (Jun 30). The lawsuit, brought by court-appointed liquidators Angela Barkhouse and Toni Shukla, seeks to hold StanChart accountable for its role in allegedly enabling fraud to be committed against 1MDB and the systematic theft of funds. Three companies in liquidation linked to 1MDB – Alsen Chance Holdings, Blackstone Asia Real Estate Partners and Brightstone Jewellery – say financial breaches and control failings by StanChart between 2009 and 2013 led to financial losses of more than US$2.7 billion, the liquidators said. They are seeking to hold the bank accountable for its alleged role in enabling fraud related to the multibillion-dollar financial scandal, the statement said. In a statement to the media on Tuesday, StanChart said it has not yet received the legal claim documents, and 'emphatically rejects' any claims made by these companies. 'The liquidators who are making these claims have publicly stated that these companies were shell companies with no legitimate business and were linked to fugitives Low Taek Jho and his associate Eric Tan,' StanChart said. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up 'They operated under false pretences, and acted as a conduit for funds misappropriated from 1MDB to launder monies,' the bank added. 'Any claims by these companies are without merit and StanChart will vigorously defend any lawsuit commenced by the liquidators.' According to the claimants, StanChart between 2009 and 2013 permitted more than 100 intrabank transfers that helped conceal the flow of stolen funds and chose to overlook obvious red flags in relation to the transfer of funds. In one example, an account held by Blackstone Asia Real Estate Partners is said to have disbursed US$150 million directly to the personal bank account of Najib Razak – the former prime minister of Malaysia who has since been jailed for corruption and money laundering. The account also disbursed US$4.7 million to jewellery, watch and bag vendors to pay for the luxury goods purchases of Najib's wife Rosmah Mansor. Another US$1 million was transferred from the account to Red Granite Pictures, a movie production and distribution company controlled by Riza Aziz – Rosmah's son and Najib's stepson. This was used to pay for movie development expenses, among other things. Through such transfers, the claimants said they have lost a total of more than US$2.7 billion and S$20 million in public funds. 'According to the claimants, these amounts, along with the nature of the money flows, evidence how StanChart had failed to conduct the anti-money laundering safeguards that would have been expected of it,' the liquidators said in the statement. StanChart noted that the transactions cited date back to 2010. 'We reported the transaction activities of these companies, both before and at the time we shut their accounts in early 2013, and fully cooperated with the investigating authorities,' the bank said in its statement. The Monetary Authority of Singapore (MAS) in 2016 imposed financial penalties of S$5.2 million on StanChart in relation to 1MDB-related fund flows. StanChart noted in its statement that while MAS identified regulatory breaches, the inspection did not find pervasive control weaknesses or wilful misconduct at the bank. 'StanChart takes our responsibility to fight financial crime extremely seriously,' it added. 'We have made significant investments in strengthening our controls and uplifting our anti-money laundering standards, and will continue to do so.' A spokesperson for the board of 1MDB said: 'We are pleased to see the court-appointed liquidators taking action which will benefit the victims of the fraud, including 1MDB. The Malaysian people were the true victims of this global fraud, and all parties are determined to hold every facilitator to account – including financial institutions that failed in their most basic duties of vigilance and responsibility.'
