by Stephanie Bodoni/Shamim Adam
Bloomberg
March 31, 2016
Authorities in Luxembourg and Singapore are investigating transactions involving 1Malaysia Development Bhd. as the Malaysian state fund faces expanding probes into allegations of embezzlement and money laundering.
Prosecutors in Luxembourg said they started an investigation of 1MDB, as the fund is known, after finding “concrete clues” of embezzlement from companies owned by the fund via accounts in Singapore, Switzerland and Luxembourg. In response to questions about 1MDB, the Singapore central bank said it is conducting a “thorough review of various transactions as well as fund flows” through its banking system.
“The alleged facts concern in particular the amounts paid during the issuance of two bonds in May and October 2012,” Luxembourgish prosecutors said in an e-mailed statement. They will seek to “retrace the origin of four transfers during 2012 and one transfer in early 2013 for a total of several hundred million dollars, to an offshore company with an account in a bank in” Luxembourg. Continue reading “Luxembourg Prosecutors Look for Embezzlement at Malaysia’s 1MDB”