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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 will be formally withdrawn.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.

A Web of Financial Intrigue

The 1MDB scandal has ensnared some of the world’s biggest financial players. U.S. prosecutors accused bankers, executives, and global intermediaries of orchestrating a vast conspiracy to loot more than $4.5 billion from the Malaysian sovereign wealth fund.

Goldman Sachs has faced its own reckoning. In 2018, the U.S. Department of Justice unsealed charges against two former Goldman managing directors for their role in underwriting more than $6 billion in 1MDB bonds. The deals earned Goldman roughly $600 million in fees while helping funnel illicit funds across the globe.

In 2023, Roger Ng, another Goldman executive, was sentenced to 10 years in prison following his conviction at trial. His former colleague, Tim Leissner, once a star witness for the prosecution, received a two-year prison term earlier in 2024 after admitting to helping funnel more than $2.7 billion in bribes and kickbacks.