Standard Chartered faces legal battle over $2.7b fraud claims in 1MDB case

The liquidators alleged that it permitted over 100 transfers related to the scandal.

Standard Chartered Bank has rejected the claims that it enabled fraud that led to over $2.7b in financial losses over 10 years ago.

Liquidators are seeking $2.7b from the bank, alleging that it has a hand in the laundering of billions related to the 1Malaysia Development Berhad (1MDB) sovereign wealth fund scandal.

“We consider these claims to be without merit, and Standard Chartered will vigorously defend them,” the bank said in a statement posted on its website.

A report by Reuters said that three companies linked to 1MDB accused Standard Chartered permitted over 100 intrabank transfers from 2009 to 2013 that helped conceal the flow of stolen funds.

Liquidators from financial services firm Kroll reportedly filed the lawsuit in the High Court of Singapore.

In its statement, Standard Chartered said that the liquidators “are not affiliates of 1MDB.”

“The liquidators acting for these companies have publicly stated that these were shell companies which did not engage in any legitimate business and were linked to fugitives Low Taek Jho and his associate Eric Tan,” the bank said.

It added that the companies operated under false pretences, and acted as a conduit for funds misappropriated from 1MDB to launder monies, it continued.

“We emphatically reject any claims made by these fraudulent shell companies which did not engage in any legitimate business,” the bank said.

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