| Staff Reporter, Singapore

Goldman Sachs to pay US$122 over 1MDB scandal

They will also pay US$2.3 billion to the US government.

Singapore has asked Goldman Sachs Singapore Pte (GSSP) to pay US$122m for its role over the 1Malaysia Development Berhad scandal.

This is part of the Deferred Prosecution Agreement of the Goldman Sachs Group Inc. with the Department of Justice of the United States of America.

The Commercial Affairs Department (CAD) has also served GSSP a 36-month conditional warning in lieu of prosecution for three counts of corruption offences punishable under Section 5(b)(i) of the Prevention of Corruption Act, Chapter 241 (PCA).

The Monetary Authority of Singapore (MAS) has issued GSSP a direction under Section 101 of the Securities and Futures Act, Chapter 289 to appoint an independent external party to conduct a review of its remedial measures.

Under the conditional warning, aside from the payment of US$122m to the government, GSSP will continue to cooperate with CAD in its 1MDB-related investigations and comply with the terms of the DPA, whether directly or indirectly, insofar as they relate or apply to GSSP.

GSSP will also have to pay a sum of US$61m to the Malaysian government. This sum represents GSSP’s share of fees earned from the 1MDB bond offerings.

The total amount to be paid by GSSP under the conditional warning is US$183m.

An estimated US$4.5b were stolen and laundered under the 1MDB scandal on the guise of being a Malaysian state fund to promote development by then prime minister Najib Razak in 2009.

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