Goldman Sachs ‘to pay $2bn fine’ in US Justice Department 1MDB probe

Goldman Sachs has reportedly struck a deal with the US Department of Justice to pay more than $2bn (£1.54bn) over its role in the Malaysian 1MDB scandal.

The agreement will let Goldman Sachs dodge a criminal conviction, Bloomberg reported. The news outlet said the fine may be announced within days.

The deal would bring to an end years of uncertainty for Goldman over the investigations and negotiations with the DOJ related to the bank’s fundraising for Malaysian Sovereign wealth fund 1MDB.

Goldman Sachs had generated about $600m in fees for its work with  the fund, which included three bond offerings in 2012 and 2013 that raised $6.5bn.

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Much of the fund, which counted former Malaysian prime minister Najib Razak as one of its co-founders, was allegedly siphoned off by people connected to Razak. 

The DOJ estimates $4.5bn was misappropriated from 1MDB between 2009 and 2014, including some of the funds that Goldman helped raise.

In September, Malaysia dropped criminal charges against three Goldman Sachs units after the bank agreed to pay $3.9bn to settle the probe.

The units – based in London, Hong Kong and Singapore – had pleaded not guilty in February and the bank has consistently denied wrongdoing.

Authorities in Singapore plan to issue a financial penalty to the bank, Bloomberg reported.

Singapore is also planning to issue a warning with conditions to Goldman, according to the news outlet, with the lender facing prosecution if it breaches the conditions. 

Goldman Sachs declined to comment. City A.M. has contacted the Department of Justice for comment.