The alleged involvement of former employees of Goldman Sachs in one of the biggest financial frauds in recent history has forced the firm to shine a spotlight on its business culture and internal controls.

In its third-quarter earnings report, filed to regulators on Friday, Goldman cited language from a recent indictment against a former partner for bribery and money laundering involving Malaysian sovereign-wealth fund 1Malaysia Development or 1MDB Goldman acknowledged for the first time the firm could face significant penalties resulting from the allegations but added that it is cooperating with investigators.