Malaysia issues Goldman Sachs with show-cause letter on 1MDB probe

Thu, 2019-03-14 06:45

SINGAPORE: Malaysia’s securities commission said on Thursday
that it has issued a show-cause letter to Goldman Sachs, which is
embroiled in multi-jurisdictional investigations into Malaysian
state fund 1Malaysia Development Berhad (1MDB).
A show-cause letter typically requires the recipient to explain why
they should not be subject to disciplinary action.
“We have issued a show cause to Goldman Sachs,” the chairman of
the Malaysia Securities Commission, Syed Zaid Albar, said at a
press conference on Thursday.
However, he did not say when the letter was issued or provide any
details about its contents. If the commission finds a financial
institution violated regulations, its powers include issuing fines
or revoking operating licenses.
Goldman Sachs did not immediately respond to a request for
Apart from facing civil lawsuits, Goldman Sachs is being
investigated by Malaysian authorities and the US Department of
Justice for its role as underwriter and arranger of three bonds
that raised $6.5 billion for 1MDB.
Goldman Sachs has consistently denied wrongdoing and said certain
members of the former Malaysian government and 1MDB had lied to the
bank about the use of the proceeds from the bond sales.

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Source: FS – All-News-Economy
Malaysia issues Goldman Sachs with show-cause letter on 1MDB probe