The Malaysian sovereign wealth fund at the center of a $4.5 billion graft is campaigning to recover assets. Several wealth managers are in the crosshairs.
Malaysia’s finance ministry filed 22 civil suits including 16 by state-owned investment fund 1MDB and 6 by former subsidiary SRC International, it said in a statement. The suits aim to recover about 96.6 billion Malaysian ringgit ($23 billion), it said.
1MDB is claiming $1.11 billion from Deutsche Bank (Malaysia) Bhd, $1.03 billion from a Swiss-based Coutts unit, and $800 million from J.P. Morgan's Swiss bank, Malaysian business daily «The Edge» reported.
Swiss Enforcement
J.P. Morgan was sanctioned by Swiss regulator Finma in 2018 for its 1MDB dealings. A Zurich-based spokesman for the U.S. bank declined to comment on the 1MDB lawsuit. Deutsche Bank said it had not yet been served papers and is «not aware of any basis for a legitimate claim against Deutsche Bank,» according to «Reuters».
Coutts' international business disappeared into Union Bancaire Privée through an asset deal six years ago. A UBP spokeswoman confirmed the Genevan wealth manager didn't inherit Coutts’ legal issues because it structured the 2015 acquisition as an asset deal.
Domestic Claims
Of the 96.6 billion ringgit, the lawsuits aim to recover 300 million ringgit from alleged domestic receipts of siphoned funds from 1MDB and SRC. 1MDB also lodged claims against individuals including former Prime Minister Najib Razak; his stepson Riza Aziz; and fugitive businessman Jho Low as well as members of his family.
The claims represents the latest chapter of Malaysia's attempts to recover assets. It clinched $2.5 billion from Goldman Sachs, $80 million from Deloitte, and $700 million from AmBank, a Malaysian lender which is owned by Australia's ANZ.
Elsewhere, Deutsche Bank is off the hook with U.S. justice officials, who are no longer investigating its role in the 1MDB scandal, «Bloomberg» reported overnight based on undisclosed sources.
