“Goldman Sachs conspired with others to bribe IPIC’s and Aabar’s former executives,” the court filing said, referring to IPIC’s subsidiary Aabar Investments PJS.

“We are in the process of assessing the details of allegations and fully expect to contest the claim vigorously,” Goldman Sachs was quoted by the publication as saying.

US authorities, along with those in Singapore, Switzerland and other jurisdictions have examined a web of illicit money transfers connected to 1MDB, a fund set up by the Malaysian government. It is claimed that the fund was used by local politicians and others to launder money. In Singapore, for example, two banks accused of lax controls over dealings with 1MDB, Falcon Private Bank and BSI, were banned from operating in the Asian city-state. 

IPIC and its successor, Mubadala Investment Co, are long-time investment-banking clients of Goldman Sachs, the WSJ said.

The report added that any moves by Abu Dhabi to move business away from Goldman could influence other governments in the Middle East.

As previously reported, former Goldman Sachs partner Tim Leissner, who travelled to Abu Dhabi several times to meet IPIC executives during the 1MDB dealings, pleaded guilty to conspiracy to money laundering and violating anti-bribery laws in the Justice Department case unsealed earlier in November.