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Singapore court approves US$2.7 billion 1MDB suit against Standard Chartered

The lawsuit alleges Standard Chartered enabled acts of fraud leading to US$2.7 billion in losses over a decade. The bank plans to appeal

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The Standard Chartered logo on tower one of the Marina Bay Financial Centre in Singapore. Photo: Harvey Kong
Reuters
A Singapore court has cleared the way for a US$2.7 billion lawsuit against Standard Chartered Bank over its alleged role in 1MDB fraud, liquidators seeking to recover the funds said on Monday.

Singapore High Court dismissed an application by the bank to strike out a suit filed against it by liquidators, the liquidators said in a press release, calling it “a significant legal victory” allowing the case to continue.

Liquidators trying to recover money from Malaysia’s sovereign wealth fund 1MDB sued Standard Chartered Bank in Singapore in June, alleging it enabled acts of fraud that caused more than US$2.7 billion in financial losses over 10 years ago.
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“We are pleased that this application has been dismissed,” they said in the statement. “It also enables us to continue the work of recovering misappropriated assets that rightfully belong to the people of Malaysia.”

The move was the latest in a wide-ranging effort to recover money belonging to 1Malaysia Development Berhad (1MDB), from which US investigators say about US$4.5 billion was stolen between 2009 and 2014 in a complex, globe-spanning scheme.
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“Standard Chartered disagrees with the decision and will be filing an appeal,” said a spokesman for the bank. In July, the bank said it emphatically rejected the liquidators’ claims.

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