The scandal surrounding the state-run fund of Malaysia, 1MDB, continues to develop, with Singapore authorities seizing accounts allegedly linked to the affair.

Authorities in Singapore have seized bank accounts in recent months as part of a probe into alleged money laundering connected to scandal-hit 1Malaysia Development Berhad. Last year, Swiss authorities acted to freeze accounts in a similar process.

The jurisdiction is working with authorities in the US, Malaysia and Switzerland who are also investigating 1MDB, the Monetary Authority of Singapore and Commercial Affairs Department, which handles white-collar crime.

The MAS and CAD said in a statement emailed to WealthBriefingAsia: “Singapore does not tolerate the use of its financial system as a refuge or conduit for illicit funds.  Since the middle of last year, the Commercial Affairs Department and the Monetary Authority of Singapore have been actively investigating possible money-laundering and other offences carried out in Singapore. In connection with these investigations, we have sought and are continuing to seek information from several financial institutions, are interviewing various individuals, and have seized a large number of bank accounts. Singapore is also cooperating closely with relevant authorities, including those in Malaysia, Switzerland and the United States. We have responded to all foreign requests for information and have requested for information from relevant counterparts to aid in our investigations.  As investigations are still on-going, we are not able to provide more details at this stage."

In July, local police said they had only frozen two bank accounts linked to the 1MDB probe, a Reuters report said. 

About a week ago, Switzerland's chief prosecutor said a criminal investigation into 1MDB had revealed that about $4 billion appeared to have been misappropriated from Malaysian state companies.

1MDB, whose advisory board is chaired by Malaysian Prime Minister Najib Razak, has been investigated by Malaysian authorities following accusations of financial mismanagement and graft. 1MDB has denied these allegations and the prime minister has done so also.

Last week, Malaysia's attorney general cleared Najib of any criminal offences or corruption, declaring that $681 million deposited into his personal bank account was a gift from Saudi Arabia's royal family and no further action needed to be taken.