JPMorgan Chase has agreed to pay the Malaysian government $330 million to resolve all legal claims tied to its role in the 1MDB corruption scandal, a civil lawsuit brought by Malaysia in 2021.
The settlement will be deposited into the government’s 1MDB Assets Recovery Trust Account and includes the withdrawal of all pending appeals from both parties, without JPMorgan admitting liability, Reuters reports.
[adinserter block="1"]The lawsuit, filed in 2021, had sought $800 million in damages from JPMorgan’s Swiss unit, alleging negligence, breach of contract, conspiracy to defraud, and dishonest assistance.
According to Malaysian and US investigators, the 1MDB fund lost at least $4.5 billion through an international embezzlement scheme that took place between 2009 and 2014.
On the same day, Swiss authorities imposed a penalty on JPMorgan’s Swiss unit, levying a fine of 3 million Swiss francs ($3.7 million) for failing to implement adequate anti-money laundering controls in transactions linked to the scandal.
The Office of the Attorney General of Switzerland found that JPMorgan Suisse had neglected necessary organizational precautions in connection with 1MDB-related dealings.
JPMorgan stated it has since enhanced its compliance and controls, earning renewed regulatory trust in Switzerland and beyond.
The settlement is part of Malaysia’s broader push to recover misappropriated funds, joining prior agreements with entities such as Goldman Sachs and Deloitte and reflecting of ongoing consequences of the 1MDB affair.
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