Malaysia's 1MDB says bid to strike out its $394 million claim against BSI Bank dismissed in Singapore (updated)

EFG International AG

29/08/2024 12:04

(Adds details, background from paragraph 2)
       KUALA LUMPUR, Aug 29 (Reuters) - A bid by now defunct
BSI Bank Limited to strike out a $394 million claim against it
by scandal-hit Malaysian state fund 1Malaysia Development Berhad
(1MDB) and its unit, Brazen Sky Limited, has been dismissed by
Singapore's High Court, 1MDB said on Thursday.  
    Three former BSI bankers have previously been convicted in
Singapore in relation to the scandal at 1MDB, where at least
$4.5 billion is estimated to have been misappropriated in a
complex globe-spanning scheme, according to Malaysian and U.S.
authorities. 
    "We are pleased this application has been denied and 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," a
spokesperson for 1MDB's board said in a statement.
    The Singapore High Court and Zurich-based banking group EFG
International, which bought Swiss bank BSI in 2016, did not
immediately respond to requests for comment on the case. 
    1MDB and Brazen Sky are seeking redress for large-scale
financial losses due to unauthorised fund transfers and money
laundering schemes allegedly orchestrated through accounts at
the Singapore branch of BSI. 
    The claim alleges that BSI and several of its former
officers facilitated these transfers, assisting in the
misappropriation of 1MDB's assets. 
    The court's decision will now allow the case against BSI,
which commenced in May, to proceed, 1MDB said. 
    EFG bought BSI from Brazil's BTG Pactual, after the bank
became tangled in legal problems related to the 1MDB scandal,
which resulted in the closure of BSI's Singapore branch in 2016.
    On Wednesday, the Swiss Federal Court convicted two
executives of oil exploration company Petrosaudi of embezzling
more than $1.8 billion from 1MDB.

 (Reporting by Rozanna Latiff and Danial Azhar; Editing by
Martin Petty)
 ((rozanna.latiff@thomsonreuters.com; Reuters Messaging:
@rozlatiff on Twitter))