JPMorgan Chase will pay $330 million to settle claims that it facilitated transactions in the looting of a Malaysian sovereign-wealth fund, one of the largest financial crimes of the century.
Malaysia had sued the bank’s Swiss unit in Malaysian civil court four years ago, alleging dishonest assistance in facilitating $800 million of payments from Malaysia’s 1MDB state investment fund, formally called 1Malaysia Development Berhad, to a fraudulent joint venture. Two businessmen behind the joint venture, 1MDB PetroSaudi, were found guilty of fraud, criminal mismanagement and money laundering in Swiss criminal court last year.