Monday, October 26, 2020

Ex-Coutts banker found guilty over $700M 1MDB funds transferred to Swiss account


A former Coutts & Co. banker was found guilty of failing to flag money-laundering concerns related to a $700 million transfer into an account controlled by Low Taek Jho, the alleged mastermind behind the 1MDB scandal.


The man, who was only identified as A., was fined 50,000 Swiss francs ($55,000) by the Swiss Federal Criminal Court in a ruling Friday.

“There were numerous signs that there were serious indications of money laundering, which grew over time,” the court said in a statement. “Despite being aware of these well-founded suspicions, A. left the communication” to regulatory officials “until the moment he left the bank.”


The decade-old 1MDB scandal, which led to the fall of former Malaysian Prime Minister Najib Razak, returned to the headlines this past week. Najib was found guilty of abuse of power and money laundering, while Goldman Sachs Group Inc. struck a $3.9 billion deal with Malaysia to resolve probes into the U.S. bank’s role in a scheme to plunder the Asian nation’s 1MDB investment fund.

- Advertisement -

The scandal was breathtaking for the audacity with which little known financier Jho Low built an $8-billion dollar fund intended to develop the Malaysian economy, and authorities allege that he then pilfered from the fund to fuel a spending spree on parties, sports cars, luxury properties and priceless art.

Low established a Seychelles-registered company, Good Star, in May 2009 and opened an account at Coutts’ Singapore branch less than a month later. By September of that year, Low was asking to cease all communication with Coutts in Singapore and to receive updates only from Coutts’ Swiss unit to a gmail address he had created: [email protected]

Despite the unorthodox demand, A. approved Low’s request to transfer $700 million from 1MDB to an account held in the name of Good Star. In an Oct. 2, 2009 email, he wrote “the due diligence is so far good and we have sufficient evidence that the payment is true and valid.”

Monika Roth, A’s lawyer, wasn’t immediately available to comment on the verdict.

- Advertisement -

Coutts & Co. was sold by Royal Bank of Scotland Group Plc in 2016 to Union Bancaire Privee. It was fined $6.5 million in 2017 for allowing $2.4 billion worth of assets related to the Malaysian development fund to flow through its accounts at a number of Swiss banks.

Low is currently a fugitive, thought to be in Macau, but authorities there on Friday rejected that suggestion by Malaysian police. Malaysia is seeking his arrest after issuing new charges against him in February.


Original article on


Julius Baer to deny two former CEOs their bonuses over money laundering scandal

Julius Baer will withhold millions of francs in bonuses from its former chief executives Boris Collardi and Bernhard Hodler, as a result of a...

Goldman Sachs executives to cover part payments of $3 billion fines in 1MDB scandal

Nine current or former Goldman Sachs executives, including CEO David Solomon, will have to pay back hundreds of millions of dollars in compensation over...

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Texas attorney general Ken Paxton fires top aide who accused him of bribery

Lacey Mase, one of the top aides who accused Texas Attorney General Ken Paxton of crimes including bribery and abuse of office, has been fired, she told The...

Subscribe For More

Get our daily notification on the latest financial crimes news around the World


Latest News

This Week

Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Mozambique seeks prosecution of ex-Credit Suisse bankers implicated in debt scandal

Mozambique's Attorney General's Office said on Wednesday it will seek the extradition of three former Credit Suisse CSGN.S bankers implicated in a $2 billion debt scandal...

Former Harris County deputy constable pleads guilty to transporting drug money and heroin

A former Harris County deputy constable and her husband pleaded guilty Wednesday to charges of conspiracy to possess with intent to distribute heroin, according...

Spanish police arrests operator of Crypto Arbitrage firm Arbistar on fraud charges

The CEO of Arbistar the Spanish investment company, Santiago Fuentes, has been arrested and arraigned on charges of fraud, belonging to a criminal organization...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks