Singapore court clears way for 1MDB-linked suit against StanChart

PETALING JAYA: A US$2.7 billion lawsuit against Standard Chartered Bank (Singapore) Limited over its alleged role in the 1MDB scandal will proceed to trial after the Singapore High Court rejected the bank’s appeal against an earlier decision refusing to strike out the suit.

In a statement today, 1MDB’s independent court-appointed liquidators welcomed the Singapore High Court’s June 30 ruling.

“This outcome reaffirms that the claims against the bank, including claims of dishonest assistance and breach of the bank’s duties of reasonable skill and care, should properly proceed to trial, where the evidence can be fully examined,” the liquidators said.

They said they remain resolute in their commitment to recover the assets misappropriated from the companies and hold accountable those responsible for facilitating the misappropriation as part of the wider fraud involving 1MDB.

The dismissal of the bank’s appeal is a positive step forward for their recovery efforts, which are ultimately for the benefit of the people of Malaysia, the liquidators added.

The suit was filed in June 2025 by three British Virgin Islands entities allegedly used to funnel stolen 1MDB funds – Alsen Chance Holdings Limited, Blackstone Asia Real Estate Partners Limited, and Brightstone Jewellery Limited.

The liquidators claimed that Standard Chartered allowed more than 100 intrabank transfers between 2009 and 2013 that “helped conceal the flow of stolen funds” and it “chose to overlook obvious red flags” in relation to the transfer of funds.

They also accused the bank of failing to comply with anti-money laundering regulations and client due diligence rules when permitting the transactions.

The claimants are represented by Lok Vi Ming SC, Joseph Lee, Mohd Haireez, Tan Kah Wai and Koo Jin Rong.

Lim Chee Wee is acting as a global coordinating counsel for 1MDB-related asset recovery efforts in Malaysia and abroad.