Malaysian criminal probe into Goldman Sachs extends across borders to units in the UK, Hong Kong and Singapore

Goldman Sachs units in the UK, Singapore and Hong Kong have been hit with criminal charges connected to a money laundering and corruption investigation in Malaysia, as the authorities target businesses outside the country’s borders.

Malaysian authorities published a charge sheet yesterday naming London-based Goldman Sachs International, Goldman Sachs (Singapore) PTE and Hong-Kong based Goldman Sachs (Asia) LLC.

The investigation is scrutinising three bond offerings raised by Goldman Sachs and others for Malaysian state investment fund 1Malaysia Development Berhad (1MDB) to a total of $6.5bn (£5.2bn).

“Having held themselves out as the pre-eminent global adviser / arranger for bonds, the highest standards are expected of Goldman Sachs,” the charge sheet said.

“They have fallen far short of any standard. In consequence, they have to be held accountable.”

A spokesperson for Goldman Sachs said: “Certain members of the former Malaysian government and 1MDB lied to Goldman Sachs, outside counsel and others about the use of proceeds from these transactions.

"1MDB, whose chief executive and board reported directly to the Prime Minister at the time, also provided written assurances to Goldman Sachs for each transaction that no intermediaries were involved.

“Under the Malaysian legal process, the firm was not afforded an opportunity to be heard prior to the filing of these charges against certain Goldman Sachs entities, which we intend to vigorously contest.

“These charges do not affect our ability to conduct our current business globally.”

Filed under Malaysia's securities laws, former Goldman bankers Tim Leissner and Roger Ng, former 1MDB employee Jasmine Loo and the fugitive financier known as Jho Low were also included in the charges.