The US is preparing to end its years-long 1MDB-linked asset forfeiture campaign through a confidential agreement with individuals close to fugitive financier Low Taek Jho.

According to Channel News Asia, the settlement would “forever (resolve) United States’ civil, criminal, and administrative asset forfeiture actions or proceeding relating to the disposition of assets tied to 1MDB”.

The report also quoted executives close to the situation saying the US Department of Justice (DOJ) signed a confidential agreement with Low’s family lawyers and their financial trustees on June 3 and 4.

“As we have discussed, this Settlement Letter Agreement takes into account your preference for the United States to handle negotiations with Malaysia, Singapore, Switzerland, France, and other foreign countries which have restraining orders in place as to most of the assets described below and in the Actions, and sets forth the procedure for the liquidation and transfer of net liquidated proceeds to Malaysia, as well as our mutual interest in resolving any potential litigation over the assets referenced below in Table 1,” the document stated, according to CNA.

Among others, the settlement would involve surrendering assets the authorities previously identified, as well as those not previously claimed or captured by prosecuting agencies worldwide.

The assets include Andy Warhol and Claude Monet artworks, as well as financial deposits and properties in Singapore and other locations.

Other matters reportedly include confidential commitments to the US government, which will pursue settlement negotiations with other parties, including administrations in other jurisdictions, to reach a global resolution on the corruption scandal which led to the jailing of former premier Najib Abdul Razak.

The agreement was signed by the DOJ’s Criminal Division Money Laundering and Asset Recovery section’s acting chief Margaret A Moeser, lawyers for the Low family’s financial trustee, and Low’s family lawyer Robin Rathmell of law firm Kasowitz Benson Torres.

Known and unknown assets

Further, the report quoted unnamed lawyers and financial executives close to the situation who revealed that Low’s lawyers began negotiations in February for a one-time settlement.

“The plan was to acknowledge assets that the US knew about, bring to the surface assets that were previously not captured under a fresh deal,” noted one senior Hong Kong-based financial executive familiar with the negotiation and close to the Low family.

The DOJ warmed up to the deal in early May, the executive added.

According to CNA, the confidential agreement is tied to the DOJ’s announcement on June 26 that it is to recover an additional US$100 million in resolving two civil forfeiture cases.

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