The Wall Street Journal

JPMorgan to Pay $330 Million Over 1MDB Transactions

Agreement settles claims that lender facilitated $800 million of payments related to looting of Malaysian sovereign-wealth fund

JPMorgan Chase said its payment will go toward a Malaysian asset-recovery trust.
JPMorgan Chase said its payment will go toward a Malaysian asset-recovery trust. Photo: David Dee Delgado/Bloomberg News

JPMorgan Chase will pay $330 million to settle claims that it facilitated transactions in the looting of a Malaysian sovereign-wealth fund, one of the largest financial crimes of the century.

Malaysia had sued the bank’s Swiss unit in Malaysian civil court four years ago, alleging dishonest assistance in facilitating $800 million of payments from Malaysia’s 1MDB state investment fund, formally called 1Malaysia Development Berhad, to a fraudulent joint venture. Two businessmen behind the joint venture, 1MDB PetroSaudi, were found guilty of fraud, criminal mismanagement and money laundering in Swiss criminal court last year.

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