1MDB: JP Morgan convicted in Switzerland, settles RM1.4b in M'sia

A JPMorganChase unit in Switzerland is being slapped with a three-million Swiss franc (RM15.7 million) fine for its role in the 1MDB scandal.

The Malaysian government similarly announced that it has reached a RM1.4 billion settlement to resolve all other outstanding matters related to the scandal.

In a statement today, the Office of the Attorney General of Switzerland (OAG) said it found JP Morgan (Switzerland) Ltd had failed to adequately clarify the nature of the business relationships between two of its managers and the Petrosaudi group, and lacked reasonable and critical judgment.

This is despite allegations that the two managers and Petrosaudi were potentially involved in defrauding 1MDB.

“The transactions carried out between Oct 7, 2014 and July 21, 2015, were made possible due to an organisational failure at JP Morgan Suisse, which did not prevent the commission of money laundering offences,” it said.

‘Without admission of liability’

Malaysia’s Finance Ministry said JPMorganChase will contribute RM1.4 billion to the Assets Recovery Trust Account “without admission of liability”.

Both sides will also withdraw all pending appeals related to 1MDB’s lawsuit against JP Morgan (Switzerland) Ltd at the High Court at Kuala Lumpur.

“The settlement agreement resolves all existing and potential claims and binds both parties from any future claims or litigations related to 1MDB,” the statement said.

According to the OAG, the three-million Swiss franc fine takes into account “the time elapsed since the offence was committed, as well as JP Morgan Suisse’s very good cooperation in the proceedings and the compensation of the private claimant (1MDB)”.

Since 1MDB is being compensated RM1.4 billion, it has decided not to file a compensatory claim.

Series of lawsuits

1MDB and its former subsidiary, SRC International Sdn Bhd, filed a series of lawsuits in 2021 against various firms and personalities that allegedly defrauded it, including against JP Morgan (Switzerland) Ltd.

It sought around US$23 billion (RM94.4 billion) from the respondents.

However, some of the 22 lawsuits - such as SRC International’s civil suit against former chairperson Ismee Ismail and 1MDB’s former CEO Shahrol Azral Ibrahim Halmi - have since been dropped.

Earlier this year, 1MDB reportedly withdrew a separate lawsuit for US$248 million against Najib Abdul Razak’s stepson, Riza Shahriz Abdul Aziz and his company, Red Granite, ostensibly to work towards a “global settlement” to recover the money.

Arul Kanda's 1MDB contract extended at Irwan's request, court told

PKR rep moots RM10m bounty for Jho Low to avert another DNAA

Two years too light, Johari says on Leissner's 1MDB sentence

RM14.6m in 1MDB assets recovered, says MACC

'Not important to us' - 1MDB taskforce unfazed by US DOJ unit closure

MACC, FBI, DOJ collaboration recovers US$20m linked to 1MDB

We warned you about 1MDB in 2011, PKR Youth hits back at Akmal

Govt recovers RM27.17b linked to 1MDB as of Sept 2024 - minister