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Goldman Sachs Malaysia agreed to pay $2.9 billion in fines

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A subsidiary of Wall Street giant Goldman Sachs Malaysia today pleaded guilty and agreed to pay more than US$2.9 billion (approximately RM12 billion) in fines in response to the overseas corruption investigation of Malaysia’s sovereign wealth fund 1MDB.
Goldman Sachs Malaysia said in the Federal Court of Brooklyn, New York that it will plead guilty to violating the Foreign Corrupt Practices Act (FCPA). As part of the guilty plea, the company admitted to “knowingly and intentionally” conspiracy to violate US anti-bribery laws.
Goldman Sachs raised US$6.5 billion for the Malaysian government in its three bond underwriting operations in 2012 and 2013. Moreover, today’s settlement resolves the US authorities’ investigation into the role of this bank.
According to the terms of the settlement, Goldman Sachs will be fined 2.3 billion U.S. dollars. In addition, repatriated about 600 million U.S. dollars in improper income.
The U.S. Department of Justice stated that this settlement sets the largest fine ever imposed for violations of the Foreign Anti-Corruption Act.

1MDB

The Malaysian government has stated in July that it has reached a US$3.9 billion settlement agreement with Goldman Sachs for its involvement in the 1Malaysia corruption case.
The scandal occurred during the tenure of former Prime Minister Najib Razak. Najib established 1MDB in 2009. The U.S. Department of Justice estimates that between 2009 and 2014, senior officials of the fund and their associates embezzled $4.5 billion to pay for real estate, art and other luxury goods.
In November 2018, the US Department of Justice sued two former Goldman Sachs bankers Tim Leissner and Huang Zonghua (Roger Ng) involved in the scandal.
Earlier, the Malaysian subsidiary of Goldman Sachs formally pleaded guilty. Besides that, pleading guilty to a charge of conspiracy to violate the Overseas Anti-Corruption Act.
The U.S. Department of Justice stated that Goldman Sachs admitted that it was responsible in the 1MDB case for conspiring to bribe senior foreign officials with the intent of underwriting 1MDB funds and other commercial activities for substantial profits.
In July of this year, Goldman Sachs announced a settlement with the Malaysian government, agreeing to pay US$3.9 billion, including US$2.5 billion in cash. Moreover, ensure that the Malaysian government can obtain US$1.4 billion in the process of seizing illegal assets.

Goldman Sachs

According to documents released by the U.S. Department of Justice on Thursday, Goldman Sachs paid $2.9 billion. This includes money paid to regulators in the United States, the United Kingdom, Singapore and other places. As well as the settlement between Goldman Sachs and the Malaysian government. Agreed to The US$600 million in fees earned in 1Malaysia’s bond issuance fund-raising activities were returned to the authorities.
Furthermore, the guilty plea marks the first time that Goldman Sachs has reached a criminal settlement as a publicly listed company. The bank was also punished for ignoring multiple warning signs in its fund-raising activities for 1MDB.
In addition to the U.S. Department of Justice and other local regulators, Goldman Sachs also agreed to pay billions of dollars in new fines to regulators in the United Kingdom, Hong Kong and Singapore.

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