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JPMorgan has agreed to pay $ 330 million to the Malaysian government to arrange claims with regard to its role in the financial scandal of 1MDB.
In a joint statement with the Malaysian government on Friday, JPMorgan said that it would contribute to the amount to the Recovery Trust account of Malaysia “without admission of liability”.
It added that the agreement “solves all existing and potential claims and binds both parties from future claims or lawsuits with regard to 1mdb”.
The fraud on 1mdb, the sovereign power fund of Malaysia, was one of the largest in history. Researchers in the US have claimed that at least $ 4.5 billion from the fund was stolen by various regulations that were conceived by the Malaysian financier Jho Low, who in general keeps his innocence.
It led to the prosecution of the Malaysian Prime Minister, Najib Razak, who was later sentenced and sentenced to six years in prison. The scandal also concerned several of the largest banks in the US, Europe and Asia.
The Swiss unity of JPMorgan was one of the several banks charged by 1MDB in 2021, because the fund tried to reclaim losses, whereby fraudulent duties, conspiracy and breach of trust claimed.
Separately, Swiss prosecutors on Friday have given a fine of JPMorgan SFR3MN ($ 3.7 million) a fine for “not failing to take all reasonable and necessary organizational measures” to prevent “exacerbated money laundering”, in connection with the 1mdb scandal.
The fine relates to SFR174MN to overseas bank transfers involving the Wall Street-money shooter between October 2014 and July 2015, said the office of the Swiss attorney general.
The 1MDB scandal discovered a worldwide web of corruption and attracted a series of best international financial institutions.
Goldman Sachs made a $ 3.9 billion settlement in 2020 with Malaysia about losing the Southeast Asian country suffering from the scandal. Goldman admitted that he paid more than $ 1 billion in bribes to obtain the insurance work and paid almost $ 3 billion in criminal fines under a resolution with the US Department of Justice.
The bank moored the wage of Chief Executive David Solomon and her President John Waldron in 2020 for “institutional failure”, but said that the two men had not been involved in or were aware of any illegal activity.
Tim Leissner, the crashed former Goldman banker in the heart of the 1MDB scandal, was sentenced earlier this year to two years in prison after being guilty of bribery, conspiracy and money laundering.
In a separate statement on Friday, JPMorgan said: “We appreciate the cooperation with the Malaysian government in resolving earlier cases with regard to 1mdb, which have been thoroughly revised. Since then we have improved our checks, the trust of supervisors in Switzerland and then.”
Additional reporting by Olaf Storbeck in Frankfurt