Singapore Court Blocks 1MDB Liquidators' Lawsuit Against Standard Chartered, BSI Bank

Singapore's High Court has blocked foreign liquidators from suing Standard Chartered Bank and BSI Bank over transactions allegedly linked to the 1Malaysia Development Bhd (1MDB) scandal. The court ruled that Singapore's cross-border insolvency framework, effective from 2018, does not apply retroactively to transactions that occurred before this date. Liquidators had accused Standard Chartered of facilitating over 100 intrabank transfers between 2009 and 2013, which allegedly concealed stolen funds contributing to losses exceeding $2.7 billion. The 1MDB scandal, one of the largest financial frauds globally, involved the theft of more than $4 billion and led to convictions of former Goldman Sachs bankers and Malaysia's ex-prime minister, while financier Jho Low remains a fugitive. Singapore fined Standard Chartered in 2016 for anti-money laundering breaches related to 1MDB, and shut down BSI’s Singapore unit for failing to monitor high-risk accounts. The court acknowledged the liquidators are left without easy recourse against the banks concerning the dubious transactions.