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The arrangement with the U.S. law enforcement agencies will be reached in the form of so-called deferred prosecution in which the authorities may reopen the prosecution if, within a certain date, the defendant commits a new offence of this nature. It is estimated that the bank will pay the US Department of Justice a fine of $2.2 billion under the deal and refund $600 million of fraudulent earnings.
The Malaysian foundation controversy emerged as early as 2015, when an audit disclosed its $11 billion in debt. The inquiry uncovered fraud schemes involving senior Malaysian politicians, and in the personal accounts of then Malaysian Prime Minister Najib Razak, almost $700 million of that sum was disclosed. Another portion of the public fund was used to offer bribes to foreign leaders. The former prime minister is currently serving a corruption sentence in jail.
Goldman Sachs reported in July that it had entered into negotiations with the Malaysian government to settle all claims, paying $2.5 billion in cash to the Malaysian authorities and promised the return of another $1.4 billion earned as proceeds from 1MDB-related properties.
Overall, the U.S. press has reported that the Malaysian case would cost Goldman Sachs more than $5 billion in penalties and payments to the Malaysian and U.S. authorities.
source: bloomberg.com, wsj.com
The Malaysian foundation controversy emerged as early as 2015, when an audit disclosed its $11 billion in debt. The inquiry uncovered fraud schemes involving senior Malaysian politicians, and in the personal accounts of then Malaysian Prime Minister Najib Razak, almost $700 million of that sum was disclosed. Another portion of the public fund was used to offer bribes to foreign leaders. The former prime minister is currently serving a corruption sentence in jail.
Goldman Sachs reported in July that it had entered into negotiations with the Malaysian government to settle all claims, paying $2.5 billion in cash to the Malaysian authorities and promised the return of another $1.4 billion earned as proceeds from 1MDB-related properties.
Overall, the U.S. press has reported that the Malaysian case would cost Goldman Sachs more than $5 billion in penalties and payments to the Malaysian and U.S. authorities.
source: bloomberg.com, wsj.com