Singapore's DBS Bank sued for $1 bn in 1MDB-linked claim

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Singapore: Court-appointed liquidators have filed a $1 billion lawsuit against Singapore’s DBS Bank, alleging that the financial institution facilitated the movement of misappropriated money from the collapsed Malaysian state fund 1MDB. The civil claim seeks approximately $1.024 billion in damages.

Advisory firm Kroll served the lawsuit on behalf of four liquidated companies Affinity Equity International Partners, Blackrock Commodities, Platinum Global Luxury Services, and TKIL Global Investments described as channels for stolen funds.

DBS Bank categorically rejected the allegations and pledged to vigorously resist the claim after consulting legal advisers. The bank noted that global recovery efforts regarding 1MDB remain a matter of public record.

The legal action follows a similar $2.7 billion lawsuit brought against Standard Chartered Bank in Singapore by liquidators representing three former 1MDB-linked entities. Standard Chartered lost an appeal in June to dismiss that civil suit.

Allegations of massive looting at 1MDB triggered international corruption investigations after top officials splurged billions on luxury assets. The resulting political fallout caused the 2018 downfall of Malaysia's ruling coalition and led to the 2022 jailing of former leader Najib Razak.