Standard Chartered Bank (Singapore) Limited is accused of enabling over 100 intrabank transfers linked to 1MDB scandal. (StanChart pic)
PETALING JAYA: The High Court in Singapore has dismissed Standard Chartered Bank (Singapore) Limited’s attempt to strike out a US$2.7 billion (RM12.5 billion) lawsuit linked to the 1MDB scandal.
The suit was filed in June by three British Virgin Islands entities allegedly used to funnel stolen 1MDB funds – Alsen Chance Holdings Limited, Blackstone Asia Real Estate Partners Limited, and Brightstone Jewellery Limited.
The liquidators claimed that Standard Chartered allowed more than 100 intrabank transfers between 2009 and 2013 that “helped conceal the flow of stolen funds” and it “chose to overlook obvious red flags” in relation to the transfer of funds.
They also accused the bank of failing to comply with anti-money laundering regulations and client due diligence rules when permitting the transactions.
Among the transactions cited were a US$150 million transfer from Blackstone’s account directly to former prime minister Najib Razak’s personal bank account, as well as tens of millions of dollars channelled from Alsen Chance, Blackstone, and Brightstone to jewellery, watch and luxury goods vendors for the benefit of Najib’s wife, Rosmah Mansor.
The liquidators said the transfers resulted in losses of more than US$2.7 billion and S$20 million in public funds.
“We are pleased that this application has been dismissed,” they said in a statement today.
“This dismissal enables us to continue our efforts to hold financial institutions and individuals accountable who were involved in misappropriating money from 1MDB.
“It also enables us to continue the work of recovering misappropriated assets that rightfully belong to the people of Malaysia.”
The latest development comes after a separate High Court ruling in September, which barred foreign liquidators from suing Standard Chartered and BSI Bank over past transactions tied to 1MDB, as Singapore’s cross-border insolvency framework cannot be applied to deals made before the law took effect in 2018.
In that case, liquidators for Blackstone Asia Real Estate Partners, and Brazen Sky had sought avoidance claims – legal tools that would have allowed them to unwind suspect transactions and recover assets for creditors.
