JPMorgan Chase & Co. has agreed to pay Malaysia US$330 million (RM1.4 billion) to settle all existing and potential claims tied to the 1Malaysia Development Berhad (1MDB) sovereign wealth fund, closing the bank’s exposure to one of the largest financial frauds in history.
Under the settlement, JPMorgan will transfer the sum to Malaysia’s Assets Recovery Trust Account without admitting liability, according to a statement issued today.
Concurrently, Switzerland’s Attorney General imposed a CHF3 million (US$3.7 million) fine on JPMorgan’s Swiss unit for its role in facilitating the laundering of funds misappropriated from 1MDB. The Swiss authorities stated that the bank “failed to implement reasonable and necessary organizational measures to prevent aggravated money laundering.”
The fine pertains to 34 overseas transfers, totaling approximately CHF174 million, conducted between October 2014 and July 2015, according to the Swiss Attorney General’s office.
The 1MDB scandal, involving over US$4 billion in misappropriated funds, triggered investigations across multiple continents. It led to the conviction and imprisonment of former Goldman Sachs Group Inc. executives and a former Malaysian prime minister. Malaysian financier Jho Low remains at large.
JPMorgan expressed appreciation for the cooperation with the Malaysian government in resolving historical issues related to 1MDB. “These matters have been thoroughly reviewed, and we have since strengthened our controls,” the bank stated.
