Compliance
Another US Authority Probes Goldman Sachs On 1MDB Saga - Media
Another US official body with regulatory powers has sought information from the financial services firm about transactions in connection with Malaysia's scandal-hit 1MDB.
Goldman Sachs is to be quizzed again by US authorities over its raising of funds for scandal-hit Malaysian state-run fund 1MDB, media reports said late last week.
New York’s Department of Financial Services wants information about disclosures Goldman Sachs made regarding bond offerings the bank underwrote for affiliates of 1Malaysia Development, according to an 4 August letter from the regulator, reports said. The organisation declined to comment when questioned by WealthBriefingAsia.
DFS sent an initial query seeking information from the bank in June. A number of organisations in the US, such as the US Justice Department, Federal Reserve and Securities and Exchange Commission are also examining Goldman Sach’s dealings with 1MDB, as previously reported by this news service.
The 1MDB saga has already sent financial shockwaves through a number of wealth management centres. The Malaysian organisation is accused of being used by the country’s prime minister, and others, as a slush fund, with certain persons siphoning off funds for personal use. In May, the Monetary Authority of Singapore, the regulator in the city-state, said it was revoking the merchant banking licence of BSI Bank, part of Switzerland-headquartered BSI, for gross misconduct of staff and widespread failings over money laundering controls connected to 1MDB. MAS has also warned it has found serious shortcomings in controls at UBS, Falcon Private Bank, DBS and Standard Chartered. Authorities in Luxembourg and Switzerland have also investigated transactions. In the case of Switzerland, it has frozen certain bank accounts.
At the time of writing, Goldman Sachs has not been accused of authorities of wrongdoing in the 1MDB case. The Malaysian fund, meanwhile, has repeatedly denied charges of corruption against it.
To see another story concerning Goldman Sachs and other aspects of the case, click here.