Singapore Court Advances US$2.7 Billion 1MDB Lawsuit Against Standard Chartered
A significant legal development has emerged from Singapore, where a High Court has given the go-ahead for a US$2.7 billion lawsuit against Standard Chartered Bank. The case centers on the bank's alleged role in the notorious 1MDB scandal, a move hailed as a "significant legal victory" by the liquidators striving to reclaim misappropriated funds.
Allegations of Fraudulent Enablement
The liquidators, tasked with recovering assets from Malaysia's sovereign wealth fund, 1Malaysia Development Berhad (1MDB), initially filed the suit in June. They contend that Standard Chartered enabled fraudulent activities, leading to over US$2.7 billion in financial losses more than a decade ago. The recent court decision saw the bank's application to strike out the suit dismissed, allowing the proceedings to advance.
Part of a Broader Recovery Effort
This lawsuit is a crucial part of a broader, global campaign to recover funds from 1MDB. Investigators in the United States estimate that approximately US$4.5 billion was siphoned from the fund between 2009 and 2014 through a complex international scheme. The liquidators expressed their satisfaction with the ruling, emphasizing its importance in their ongoing mission to retrieve assets that rightfully belong to the Malaysian people.
Standard Chartered Vows to Appeal
Standard Chartered, however, has firmly stated its disagreement with the court's decision. A spokesperson confirmed the bank's intention to file an appeal, reiterating its emphatic rejection of the liquidators' claims made in July. This indicates a protracted legal battle is likely as both parties prepare to present their cases.
