Goldman Sachs reaches deal with Malaysia over sovereign wealth fund ‘fraud’

Goldman Sachs has reached a 3.9 billion US dollar settlement with Malaysia over the 1MDB sovereign wealth fund that was used to launder money.

Malaysian and US prosecutors had alleged that bond sales organised by Goldman Sachs for 1MDB provided one of the means for associates of former Malaysian leader Najib Razak to steal billions over several years from a fund that was ostensibly set up to accelerate Malaysia’s economic development.

Mr Najib was arrested as part of the scandal.

Two former Goldman Sachs bankers have been charged for their alleged role in helping 1MDB launder money.

Goldman on Friday said it had agreed to pay the government of Malaysia 2.5 billion US dollars and to guarantee that it gets at least 1.4 billion US dollars in proceeds from assets that have since been seized around the globe.