Goldman Sachs Subpoenaed for Connection to Global Corruption Ring

By Published on July 30, 2016

Goldman Sachs has been subpoenaed for its alleged connections to a global corruption ring, according to reports Friday.

Goldman Sachs, a worldwide leading investment bank with ties to the 2008 banking crisis, faced subpoenas from the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) concerning its relationship with a Malaysian consortium at the heart of a global corruption scandal, reports the Wall Street Journal.

Goldman has cooperated thus far with authorities, providing the necessary documents to both the SEC and the DOJ.

In addition to the documents in question, authorities want to interview both current and former bank employees who have connections with the Malaysian group —1Malaysia Development Bhd (1MDB).

The investigation focuses on compliance with the US Bank Secrecy Act, which requires domestic financial institutions to “assist U.S. government agencies to detect and prevent money laundering.”

Goldman is being investigated specifically regarding the $2.5 billion in profits it earned from 1MDB bond sales, which were “diverted from the fund to shell companies controlled by influential figures in Malaysia and Abu Dhabi,” reports the Wall Street Journal.

It isn’t just U.S. authorities looking into the matter. Singapore’s central bank stated Saturday that it is investigating.

The investment bank has ties to 1MDB dating back to 2009, with some $6.5 billion in bond acquisitions over the course of the relationship.

Goldman says that it had “no visibility into whether some of those funds may have been subsequently diverted to other purposes.”


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