Singapore court clears way for US$2.7 billion suit against Standard Chartered over alleged role in 1MDB fraud

“We are pleased that this application has been dismissed,” they said in the statement. “It also enables us to continue the work of recovering misappropriated assets that rightfully belong to the people of Malaysia.”

The move was the latest in a wide-ranging effort to recover money belonging to 1Malaysia Development Berhad (1MDB), from which US investigators say about US$4.5 billion was stolen between 2009 and 2014 in a complex, globe-spanning scheme.

“Standard Chartered disagrees with the decision and will be filing an appeal,” said a spokesperson for the bank on Monday.

The bank sent a second statement on Tuesday, saying the claims were “without merit” and had been brought against the bank by “shell companies that misappropriated funds from 1MDB”.

“We reported the transaction activities of these companies before we shut their accounts in early 2013. We take our responsibility to fight financial crime extremely seriously, in service of our clients and the markets in which we operate,” said the spokesperson.

The liquidators did not immediately respond to a request for comment on Standard Chartered’s allegations.