JPMorgan Chase has agreed to pay $330 million (about RM1.4 billion) to Malaysia, a deal that closes out the bank’s long-running dispute over its role in the 1MDB scandal.
The announcement came on August 22 after years of back-and-forth in courts on multiple continents.
The settlement money will be funneled into Malaysia’s Assets Recovery Trust Account, which holds proceeds from efforts to claw back billions siphoned off in what investigators have called one of the world’s biggest financial frauds.
As part of the agreement, Malaysia will withdraw all outstanding lawsuits, including claims against JPMorgan’s Swiss arm and both sides pledged not to pursue further action tied to the affair.
It’s a legal truce, but one that leaves the broader questions about bank accountability in scandals like 1MDB hanging in the air.
Settlement ends years of legal uncertainty
The 1MDB affair has weighed on global finance for more than ten years. Investigators estimate at least $4.5 billion was siphoned from the fund between 2009 and 2014, money that passed through some of the world’s biggest financial hubs.
Banks from Wall Street to Zurich like Goldman Sachs, Deutsche Bank, and Coutts have been pulled into the fallout.
Malaysia’s cases against JPMorgan’s Swiss arm accused the bank of negligence, breach of duty, and even conspiring to defraud the sovereign fund in pursuit of damages worth hundreds of millions.
JPMorgan’s $330 million payment, finalized without any admission of wrongdoing effectively closes the chapter on its legal entanglements in Malaysia.
The agreement clears the bank of responsibility for both current and future claims tied to 1MDB, ending years of uncertainty over its exposure.
In a joint statement, the Malaysian government and JPMorgan stressed that the settlement “binds both parties from any future claims or litigations related to 1MDB,” offering a measure of finality after protracted disputes.
JPMorgan faces renewed Swiss scrutiny
The settlement comes at a delicate moment, overlapping with fresh action in Switzerland against JPMorgan’s local subsidiary.
Earlier this week, the Swiss Attorney General fined the unit 3 million francs ($3.7 million), citing organizational shortcomings that allowed money laundering tied to 1MDB.
Authorities pointed to dozens of suspect transfers worth roughly 174 million francs, processed between late 2014 and mid-2015, even as public warnings mounted over 1MDB’s partner PetroSaudi.
Prosecutors concluded the transactions were directly linked to earlier misconduct, including PetroSaudi executives later convicted of siphoning more than $1.8 billion from the fund.
JPMorgan has highlighted steps taken since then to bolster its anti-money-laundering systems, stressing that controls are far stronger today.
For Malaysia, the deal represents another step forward in a years-long drive to claw back billions siphoned from the sovereign fund.
It adds to a string of international recoveries and underscores a sense of closure in one of the most far-reaching financial scandals of the past decade.
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