Malaysia’s 1MDB fund says cleared to pursue case against BSI bank

KUALA LUMPUR: Malaysian sovereign wealth fund 1MDB said Thursday it has been cleared to proceed with legal claims against Swiss private bank BSI for financial loses arising from unauthorised fund transfers.

1Malaysia Development Berhad, which was at the centre of a massive financial scandal that brought down the government of Malaysia’s then-prime minister Najib Razak in 2018, has accused BSI of facilitating the transfers and orchestrating money laundering schemes that led to the pilfering of its assets.

The fund said on Thursday that the High Court in Singapore dismissed an application by BSI to dismiss a $394 million claim 1MDB and a subsidiary had lodged against the bank, clearing the way for the case to proceed.

A spokesperson for the 1MDB Board said in a statement that the fund was “pleased” with the ruling.

“We are... committed to holding accountable the institutions and individuals involved in misappropriating money from Malaysia’s sovereign wealth fund, while ensuring the recovery and restitution of these assets back to the Malaysian people,” the spokesperson said.

BSI was placed under liquidation in 2017.

The claim against BSI is part of 1MDB’s ongoing global effort to recover billions of dollars of money siphoned from the company.