Compliance
Malaysian Dirty Money Scandal Reaches White House - Media
The scandal surrounding the Malaysian state-run fund continues to spread worldwide, and according to a news report, has even touched the White House.
(Repeat of article initially published last Friday on Family
Wealth Report, a North American-focused publication and sister
news service to this one.)
The Malaysia-based money laundering scandal that has already seen
two banks banned from Singapore, fines, legal action in
Switzerland and investigations elsewhere threatens to cause
heartburn in US politics at the highest level.
Federal officials are investigating if money allegedly misappropriated from Malaysian state fund 1Malaysia Development Berhad, or 1MDB, was sent to a US businessman who scheduled a visit to the Oval Office for relatives of Malaysia's prime minister, Najib Razak, the Wall Street Journal reported late last week. The WSJ quoted a number of sources.
Frank White Jr, founder and CEO of investment firm DuSable Capital Management, escorted Najib’s son and stepson to the Oval Office where they met President Barack Obama in December 2013. Property transactions carried out by the stepson, Riza Aziz, in the US are being investigated by federal authorities.
White made a business deal, where about $10 million embezzled from 1MDB could have gone indirectly to him, the WSJ reported. Last November, the report said, 1MDB paid $69 million to purchase a DuSable unit out of a deal they signed to build solar-power plants.
The 1MDB saga has seen two Switzerland-headquartered banks, BSI and Falcon Private Bank, banned from Singapore; Swiss authorities have initiated legal proceedings against Falcon. Authorities in Luxembourg have also probed financial dealings. Interestingly, the UK has not yet, as far as this news service is aware, become involved. The Financial Conduct Authority, the UK regulator, told this publication it cannot confirm or deny any investigation is taking place.
As has been previously reported, the US Justice Department is seeking to confiscate over $1 billion of assets linked to 1MDB, including 11 luxury properties in the US.
