A big legal win has just taken place in Singapore. The High Court there has allowed 1Malaysia Development Berhad (1MDB), Malaysia’s troubled former sovereign wealth fund, and its subsidiary Brazen Sky Limited to move forward with a massive lawsuit. They are suing BSI Bank for a huge amount — US$394 million, or about RM1.68 billion. This case is part of the ongoing 1MDB scandal, one of the world’s largest financial scandals involving billions of ringgit that went missing.
BSI Bank had tried to stop the case by asking the court to strike it out. In simple words, they asked the court to throw the case away before it even started. But the court said no. This means 1MDB can now bring its claim to court fully and argue that BSI played a role in helping public money be transferred and hidden illegally.
This decision is important because it sends a message that banks and financial institutions may be held responsible if they are found to have helped in wrongdoing. The court also ordered BSI Bank to pay the legal fees of 1MDB and Brazen Sky Limited, adding more pressure on the already-troubled bank.
Accusations of Helping to Hide Stolen Money
According to the lawsuit, 1MDB says BSI Bank and some of its former staff helped move money that was not supposed to be moved. They say the bank’s actions allowed public funds — which means money that belongs to the people of Malaysia — to be taken and hidden in different countries around the world.
BSI Bank has already been in trouble before. In Switzerland, the bank was convicted of breaking money-laundering laws, and that case was also tied to the 1MDB scandal. Now, Swiss authorities are revising that conviction to highlight that it involved wrongdoing specifically against 1MDB.
Brazen Sky Limited, the subsidiary of 1MDB, is also taking part in the legal action. The company’s joint liquidators — people in charge of managing what’s left of the company — have filed another claim against BSI and some of its former executives. These legal efforts are part of a larger plan to recover as much of the missing money as possible.
A spokesperson for 1MDB said they were pleased that the court rejected BSI’s attempt to block the lawsuit. They said this was another step forward in holding people and institutions accountable for what happened in the 1MDB scandal. “We are committed to making sure the stolen money is returned to the Malaysian people,” they said.
Multi-Country Teamwork to Recover Lost Funds
The case against BSI Bank is not happening in isolation. Legal teams in Singapore and Malaysia are working together closely. They are trying to recover money that was wrongly taken out of 1MDB and sent across different countries.
This case is just one of many actions being taken around the world to deal with the 1MDB scandal. The scandal involved not just Malaysia but also banks, companies, and people from different countries. It has led to court cases, criminal charges, and financial penalties in countries like the United States, Switzerland, Singapore, and others.
BSI Bank is now in liquidation, which means it is closing down and selling off its assets. But that doesn’t stop legal action. The court’s ruling in Singapore means that even though the bank is shutting down, it can still be held responsible for what happened.
This ruling gives more strength to Malaysia’s ongoing campaign to get back the billions that were lost. For now, 1MDB and Brazen Sky will be able to move ahead with their legal battle against BSI Bank in Singapore, seeking justice and the recovery of public money.