JPMorgan Chase agreed Friday to pay $330 million to Malaysia’s Assets Recovery Trust Account, closing the chapter on allegations its Swiss arm played a role in the billion-dollar 1Malaysia Development Berhad (1MDB) scandal. The announcement, delivered jointly by JPMorgan and the Malaysian government, marked a dramatic settlement in one of the most notorious financial controversies of the last decade.
“The Malaysian government and JPMorgan Chase are pleased to announce that they have resolved all matters relating to 1MDB,” both sides declared. The agreement ensures that existing and future claims linked to the scandal will be dropped, and pending appeals in Malaysia’s High Court involving JPMorgan (Switzerland) Ltd. will be formally withdrawn.
Swiss Authorities Weigh In
The deal arrived the same day Switzerland’s attorney general closed a parallel criminal probe, fining JPMorgan Suisse 3 million Swiss francs ($3.7 million). Authorities concluded the bank failed to install adequate safeguards against money laundering, allowing dozens of suspicious transfers between October 2014 and July 2015.
Investigators alleged JPMorgan’s Swiss unit processed 43 transactions, including 34 overseas transfers worth CHF 174 million ($217 million), tied to Saudi oil firm PetroSaudi. Two of PetroSaudi’s managers were convicted last year of siphoning off more than $1.8 billion from 1MDB.
“The transactions carried out between 7 October 2014 and 21 July 2015 were made possible due to an organisational failure at JPMorgan Suisse, which did not prevent the commission of money laundering offences,” Swiss prosecutors said. Still, they acknowledged the bank’s “very good cooperation” and noted the fine reflected both the passage of time and JPMorgan’s compensation to Malaysia.
