• Standard Chartered Bank is facing a $2.7 billion lawsuit for its alleged role in the 1MDB fraud.
• The lawsuit was filed by liquidators in Singapore seeking to recover misappropriated funds.
• Liquidators claim the bank overlooked red flags that enabled financial losses for the Malaysian sovereign fund.

Liquidators from Malaysia's sovereign wealth fund 1Malaysia Development Berhad (1MDB) have initiated legal proceedings in Singapore against Standard Chartered Bank, alleging its involvement in a fraud scheme that led to over $2.7 billion in financial losses. This action is part of a broader effort to recover funds from 1MDB, which U.S. investigators indicate suffered losses exceeding $4.5 billion in a complex global scheme, according to Reuters, Channel News Asia, and South China Morning Post.

The legal filing was made by liquidators from the financial services firm Kroll in the High Court of Singapore. They seek to hold Standard Chartered accountable for allegedly facilitating the fraud by allowing over 100 intrabank transfers between 2009 and 2013, which supposedly helped conceal the flow of stolen funds linked to 1MDB. The bank is accused of ignoring clear warning signs that should have prompted further investigation, as stated by the liquidators, according to Reuters, Channel News Asia, and South China Morning Post.

Standard Chartered Bank has publicly rejected these allegations, stating that any claims made by the liquidators lack merit and that the bank intends to rigorously defend itself against the lawsuit. The liquidators highlighted that the fraudulent transfers included funds sent to the personal account of former Malaysian Prime Minister Najib Razak, who is currently serving a prison sentence for graft linked to 1MDB, according to Reuters, Channel News Asia, and South China Morning Post.