Legal
Malaysia Drops Criminal Charges Against Goldman Sachs

A court in the Southeast Asian nation has ditched charges against the US firm. However, proceedings against two bankers who worked on deals linked to 1MDB continue, because a July settlement and today's ruling do not cover them, reports said.
Malaysia has dropped criminal charges against units of Goldman Sachs over its
role in the alleged theft of billions of dollars from the
government-backed 1MDB
fund, the Wall Street Journal and other media reported
today. The move is a big step in the terms of a recent $3.9
billion settlement.
The US firm was the main banker for 1MDB, which Malaysia created
in 2009. Goldman Sachs raised billions of dollars for the
Malaysian fund.
As reported in July, the firm agreed to pay Malaysia $2.5 billion
and guaranteed the recovery of $1.4 billion in assets allegedly
stolen from the fund.
Malaysia agreed to drop criminal proceedings against the bank
related to the fund.
A Malaysian court today discharged and acquitted three
subsidiaries of the bank over their alleged involvement in the
scandal.
Goldman raised $6.5 billion for 1MDB through three bond sales in
2012 and 2013, much of which US authorities say was stolen by a
Malaysian government advisor, Jho Low, who is still at large.
Goldman has said it was misled by two bankers who worked on the
deals, Southeast Asia chairman Timothy Leissner and managing
director Roger Ng. Leissner has pleaded guilty in the US to
charges of conspiracy to launder money and violate anti-bribery
laws. Ng has been indicted on bribery and money-laundering
charges. He has pleaded not guilty.
The July settlement and today’s court decision do not cover
proceedings against Messrs Leissner and Ng, the WSJ
said.
The reports added that Goldman Sachs is still in talks with the
US Department of Justice for a settlement.