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Goldman Sachs fined $350m in Hong Kong over 1MDB scandal

Goldman Sachs fined $350m in Hong Kong over 1MDB scandal

Mubasher: Hong Kong's market regulator fined Goldman Sachs's Asian business $350 million for its role in raising billions of dollars for 1Malaysia Development Berhad (1MDB), Reuters reported on Thursday. 

The Securities and Futures Commission (SFC) said “serious regulatory failures” in management controls at Goldman Sachs’s Asian unit contributed to the misappropriation of $2.6 billion from three 1MDB bond offerings.

The Wall Street bank helped the Malaysian sovereign wealth fund raise $6.5 billion in three bond offerings in 2012 and 2013.

An estimate of $4.5 billion was stolen from 1MDB in a scheme that involved high-level officials, including the former Malaysian Prime Minister, Najib Razak as well as Goldman Sachs staff. 

In July, the investment bank agreed to pay $3.9 billion to settle Malaysia’s criminal lawsuit.

The bank is also expected this week to agree to pay more than $2 billion to drop US charges related to the matter.