JPMorgan to fork over $330 million to Malaysia in resolution of the 1MDB scandal
JPMorgan Settles with Malaysia over 1MDB Scandal, Pays $330 Million
In a significant development, JPMorgan Chase & Co. has reached a settlement with Malaysia, effectively ending the bank's exposure to the 1MDB financial fraud case. The American financial giant will pay 1.4 billion ringgit ($330 million) to Malaysia's Assets Recovery Trust Account.
The settlement, announced by the Swiss authorities, resolves all existing and potential claims between the parties and bars both from any future claims or litigations related to 1MDB. The agreement marks the culmination of over a decade-long scandal that has rocked the global financial world.
The 1Malaysia Development Bhd investment fund, at the heart of the scandal, has been embroiled in money laundering allegations and has led to the imprisonment of ex-Goldman Sachs Group Inc. executives and a former Malaysian prime minister.
The settlement, however, does not constitute an admission of liability by JPMorgan Chase & Co. The bank has maintained that they have enhanced their controls since the matters related to 1MDB were thoroughly reviewed.
In addition to the fine imposed on JPMorgan Chase & Co., the Swiss authorities also fined the bank's Swiss unit 3 million Swiss francs ($3.7 million) for its role in enabling the laundering of funds misappropriated from 1MDB. The fine pertains to payments including 34 overseas transfers for a total of around 174 million francs that took place between October 2014 and July 2015.
JPMorgan has expressed appreciation for the collaboration with the Malaysian Government in resolving past matters related to 1MDB. The stolen funds from the 1MDB scandal are estimated to have exceeded $4 billion, with Malaysian financier Jho Low, who is linked to the scandal, remaining a fugitive.
The 1MDB scandal has spawned probes across multiple continents, underscoring the global reach of the fraud. This settlement resolves one of the biggest financial fraud cases in history, providing a measure of closure for those affected by the scandal.
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