1MDB scandal: Deutsche Bank probed by US Justice Department over work for Malaysian state fund

The department is looking into whether Deutsche Bank broke foreign corruption or anti-money-laundering laws

Billions of dollars were looted from the 1MDB investment vehicle between 2009 and 2014 and spent on everything from yachts to expensive artwork

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Deutsche Bank has “cooperated fully” with the investigation, it said in a statement, and claims it was misled by 1MDB. Photo: EPA

Published: 11:26am, 11 Jul 2019Updated: 9:31pm, 11 Jul 2019

The US Department of Justice opened an investigation into whether Deutsche Bank, Germany’s embattled biggest lender, violated foreign financial laws in its work for 1MDB, US media have reported.

The department is looking into whether Deutsche Bank broke foreign corruption or anti-money-laundering laws through its work for 1MDB, which included helping the Malaysian fund raise US$1.2 billion in 2014 as concern’s about its management and financials had begun to circulate, The Wall Street Journal reported.

Billions of dollars were looted from the investment vehicle between 2009 and 2014 and spent on everything from yachts to expensive artwork, in a fraud allegedly involving disgraced Malaysian ex-premier Najib Razak and his cronies.

The investigation into Deutsche Bank has been helped by former Goldman Sachs banker Tim Leissner, who pled guilty to his involvement in the 1MDB scandal, the Journal reported.

Prosecutors are looking into the role of Leissner’s former colleague Tan Boon-Kee, who also worked as Deutsche Bank’s Asia-Pacific head of banking for financial institution clients, the newspaper said.

Tan left Deutsche Bank last year after it was discovered she had been in contact with Jho Low, the Malaysian financier who allegedly played a central role in the fraud, according to the Journal.

Jho Low, the Malaysian financier who allegedly played a central role in the fraud. Photo: SCMP Pictures

Deutsche Bank has “cooperated fully” with the investigation, it said in a statement, and claims it was misled by 1MDB.