Singapore court allows US$2.7 billion 1MDB-linked lawsuit against Standard Chartered to proceed

A Singapore High Court ruling has cleared the way for a US$2.7 billion lawsuit against Standard Chartered Bank over alleged involvement in transactions linked to the 1Malaysia Development Berhad fraud.

According to a press release issued on 24 November 2025 by liquidators overseeing several 1MDB-linked entities, the court dismissed the bank’s application to strike out the suit, allowing the proceedings to continue.

The liquidators described the ruling as “a significant legal victory” and said it strengthened ongoing efforts to recover misappropriated assets.

They said the lawsuit, filed in June, claims the bank enabled acts of fraud that caused more than US$2.7 billion in losses more than a decade ago.

In their statement, the liquidators said the decision “enables us to continue the work of recovering misappropriated assets that rightfully belong to the people of Malaysia”.

The case is part of broader global efforts to trace and reclaim money linked to 1MDB, from which investigators in the United States have said about US$4.5 billion was stolen between 2009 and 2014.

A spokesperson for Standard Chartered said the bank “disagrees with the decision and will be filing an appeal”, adding that it maintains the claims lack merit.

In a second statement issued on Tuesday, Standard Chartered said the suit had been brought by “shell companies that misappropriated funds from 1MDB”, and asserted it had promptly reported suspicious activities before closing the companies’ accounts in early 2013.

“We take our responsibility to fight financial crime extremely seriously,” the spokesperson said, noting the bank acted in service of its clients and the markets in which it operates.

The liquidators did not immediately comment on the bank’s allegations.

According to the liquidators, three 1MDB-linked companies in liquidation allege Standard Chartered permitted more than 100 intrabank transfers between 2009 and 2013 that obscured the movement of stolen funds.

They also claim the bank overlooked obvious red flags, which they argue contributed to the losses now under litigation.

The liquidators said the transactions included transfers to the personal account of former Prime Minister Najib Razak, who is serving a six-year sentence after graft convictions connected to 1MDB.

Singapore, Switzerland and several other jurisdictions have launched investigations into 1MDB transactions, resulting in enforcement actions against financial institutions and individuals worldwide.

Malaysia has said it recovered 29 billion ringgit (US$7.01 billion) in 1MDB assets between 2019 and February 2024.

In 2016, Singapore’s central bank imposed penalties of S$5.2 million (US$4 million) on Standard Chartered’s local unit for money-laundering breaches linked to 1MDB.