Compliance
China Reportedly Helps Embattled 1MDB Repay Multi-Billion-Dollar Loan

Malaysia's 1MDB, embroiled in debt payment disputes and a major money laundering scandal, has a potential saviour in the form of China, a report says.
1MDB, the Malaysian
state-run fund at the centre of a storm over illicit transactions
that have seen a number of banks punished by Singapore
regulators, is preparing to repay Abu Dhabi’s International
Petroleum Investment Company with aid from China, the
Financial Times has reported.
The state-owned IPIC in Abu Dhabi is said to be claiming around
$6.5 billion. The FT cited two unnamed persons as
sources.
Earlier this year, the two funds were at odds over the repayment.
There has been controversy over the fact that Khadem al-Qubaisi,
former head of IPIC, has been detained over his suspected role in
the affair.
He has not been charged with any offence.
The report said China has been approached as a source of funds
for 1MDB. One source told the publication that Malaysia would
swap assets for financing, it said.
The dispute between the Abu Dhabi fund and its Malaysian
counterpart arose from a bailout deal last year in which IPIC
agreed to lend $1 billion to 1MDB and assume payments on $3.5
billion of the Malaysian fund’s debt. It also forgave some debt
that 1MDB owed IPIC. The Malaysian fund was to transfer assets to
cover the amount of the loan, the assumed debt and the forgiven
debt.
During 2016, BSI’s Singapore-based bank and Falcon Private Bank
were ordered by the Monetary Authority of Singapore to leave the
city-state because of breaches of AML regulations and other
transgressions. A number of other banks have been punished for
shortcomings by the MAS. The transactions were linked to 1MDB.
The US, Switzerland and Luxembourg have also launched
investigations surrounding transactions linked to the Malaysian
fund.
1MDB has denied wrongdoing.