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Fri, 22 Nov 2019 13:57 GMT

US Probes Deutsche Bank’s Involvement in Malaysia’s 1MDB Scandal

Business

7Dnews London

Thu, 11 Jul 2019 11:07 GMT

The US Justice Department is conducting a probe into possible Deutsche Bank violation of foreign corruption or anti-money-laundering laws in its work for now defunct state fund 1Malaysia Development Berhad (1MDB), the Wall Street Journal (WSJ) said on Wednesday July 10th.

According to Reuters, the news comes after the bank announced plans to close its global equities unit and slash 18,000 jobs globally in a €7.4 billion ($8.34 billion) restructuring programme.

Deutsche Bank's work for 1MDB included helping to raise $1.2 billion in 2014 as concerns about the fund's management and financials came to light, the newspaper said, citing sources familiar with the matter.

Prosecutors are concentrating on the role of Tan Boon-Kee, a colleague of a former Goldman Sachs Group Inc executive, Tim Leissner, who worked with him on 1MDB-related business, the paper said.

Tan left Goldman to become Asia-Pacific head of banking for financial institutions clients at Deutsche Bank, where she was involved with further 1MDB dealings, the WSJ added. She has since declined to comment further.

In an emailed statement, Deutsche Bank said it had fully cooperated with all regulatory and law enforcement agencies that made inquiries about the fund.

"As stated in asset forfeiture complaints filed by the US Department of Justice, 1MDB made 'material misrepresentations and omissions to Deutsche Bank officials' in connection with 1MDB's transactions with the bank," the bank told Reuters.

"This is consistent with the bank's own findings in this matter," it added.


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