KUALA LUMPUR – A Singapore court has allowed a $2.7 billion (RM11.1bil) lawsuit against Standard Chartered Bank to proceed, clearing the way for liquidators to seek to recover funds allegedly misappropriated in the 1MDB scandal.
On Monday, the Singapore High Court dismissed the bank’s application to strike out the case, which the liquidators described as “a significant legal victory.” This decision enables the lawsuit to continue, Reuters reported.
The suit, filed by liquidators representing Malaysia’s sovereign wealth fund, 1MDB, alleges that Standard Chartered Bank played a role in facilitating fraud that resulted in over $2.7 billion in losses. The case stems from actions more than a decade ago, with the liquidators pursuing the funds in Singapore’s courts since June.
“We are pleased that this application has been dismissed,” the liquidators stated in a press release. “It also enables us to continue the work of recovering misappropriated assets that rightfully belong to the people of Malaysia.”
This latest legal move is part of an ongoing global effort to reclaim funds stolen from 1MDB, Malaysia’s state investment fund, which U.S. investigators say was looted of approximately $4.5 billion between 2009 and 2014. The scandal has spanned multiple continents and implicated prominent figures worldwide.
A spokesperson for Standard Chartered Bank stated, “We disagree with the decision and will be filing an appeal.” In July, the bank rejected the liquidators’ claims, which accuse it of allowing over 100 intrabank transfers between 2009 and 2013 that helped conceal the flow of stolen money.
The liquidators also allege that the bank ignored clear warning signs regarding these transfers, which ultimately contributed to the financial losses. They claim that the stolen funds passed through Standard Chartered accounts, including transfers to the personal bank account of former Malaysian Prime Minister Najib Razak, who is serving a six-year prison sentence for corruption related to 1MDB.
The 1MDB scandal has led to investigations in at least six countries, including Singapore and Switzerland, and implicated numerous high-ranking officials and bankers, including Najib and executives from Goldman Sachs.
As of February 2024, Malaysia has recovered 29 billion ringgit ($7.01 billion) in assets tied to 1MDB.
In 2016, Singapore’s central bank fined Standard Chartered’s local unit S$5.2 million for money laundering breaches related to the scandal. – November 24, 2025