Singapore: Singapore’s High Court has opened the door for one of the most significant financial misconduct cases in recent years, allowing a US$2.7 billion lawsuit against Standard Chartered Bank to proceed. The legal action, filed by liquidators of several companies linked to the collapsed Malaysian sovereign wealth fund 1MDB, alleges that the bank played a facilitating role in the illicit movement of billions of dollars siphoned from the fund.
The court rejected Standard Chartered’s attempt to throw out the claim, marking a major procedural victory for the liquidators. They argue that the bank handled more than 100 internal fund transfers between 2009 and 2013 that disguised the flow of misappropriated money. According to their filings, a significant portion of these funds was funneled into personal accounts and lavish purchases associated with former Malaysian Prime Minister Najib Razak and his wife, Rosmah Mansor. Some transfers allegedly helped pay for luxury jewellery and designer goods, deepening the scandal’s already explosive political dimensions.
Representing the liquidated companies, Kroll specialists Angela Barkhouse and Toni Shukla welcomed the ruling. They described the decision as a “critical step forward” for recovering public money that had been diverted through complex financial manoeuvres. Their team maintains that the misappropriated funds should rightfully be restored to the people of Malaysia, who ultimately bore the cost of the 1MDB collapse.
Standard Chartered has stringently denied any wrongdoing. The bank said the allegations are “unfounded” and confirmed it will appeal the High Court’s decision. In its defense, the bank claims it monitored and reported suspicious activities in real time to regulators, before shutting down the accounts linked to the companies in early 2013. The institution has also emphasized past cooperation with financial authorities investigating the scandal.
The lawsuit forms part of a worldwide effort to recover funds stolen from 1MDB, a global corruption case that U.S. officials estimate involved more than US$4.5 billion in misappropriated assets across multiple jurisdictions. Singapore itself has previously penalised Standard Chartered, issuing a S$5.2 million fine in 2016 for anti–money laundering lapses related to 1MDB-linked transactions.
As the court prepares to hear the case in full, financial analysts say the ruling could have sweeping implications for how international banks handle internal transfers and due-diligence responsibilities. For Standard Chartered, the trial represents not just a legal battle but a major reputational test within the global banking sector.