Money laundering scandals

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Firestarter
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1MDB, Deutsche and Goldman

Post by Firestarter » Sun Jul 14, 2019 4:08 pm

The American DoJ is investigating if the Deutsche Bank violated anti-money-laundering laws for the 1Malaysia Development Bhd. Fund (1MDB), which included help in raising $1.2 billion in 2014.

This is related to the multibillion-dollar fraud scandal with the Malaysian state investment firm 1MDB that toppled Malaysian Prime Minister Najib Razak and caused Goldman Sachs stock to tumble last year.
The DoJ said at least $4.5 billion was stolen between 2009 and 2014; and used to bribe government officials, including a slush fund controlled by former PM Razak, and buy hundreds of millions of dollars in luxury goods.

The investigation into Deutsche Bank was started after tips from former Goldman Sachs South-East Asia chairman, Tim Leissner.
According to the complaint, Deutsche Bank was involved with 1MDB from its start in 2009, when the bank facilited 1MDB’s first big deal, a joint venture with the Swiss PetroSaudi.

Prosecutors have focused on the role of one of Leissner’s former colleagues, Tan Boon-Kee, who worked with Leissner on business for 1MDB. She left Goldman Sachs to become Asia Pacific head of banking for financial-institutions clients at Deutsche Bank.
In 2018, Tan was reportedly forced to leave Deutsche Bank, after communication was discovered with Jho Low, the Malaysian financier that was described as the “central player” in the 1MDB scandal.

The Justice Department alleges that a group led by Low stole some $1 billion from the $1.8 billion contribution by 1MDB, but it isn’t clear what specific offences Deutsche Bank is accused of: https://www.reuters.com/article/us-mala ... SKCN1U60CR


In Malaysia, criminal charges have been filed against Goldman Sachs for stealing $2.7 billion from the proceeds of 3 bonds worth $6.5 billion that it arranged for Malaysian 1MDB: https://www.malaymail.com/news/malaysia ... fe/1767910
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