• JPMorgan to pay $330 million to settle 1MDB claims with Malaysia
• Funds go to Malaysia’s Assets Recovery Trust Account without admission of liability
• Malaysia’s civil lawsuit accused JPMorgan’s Swiss unit of negligence and conspiracy
• Swiss authorities fined JPMorgan $3.7 million for money laundering failures
• Case linked to $217.4 million in transfers via JPMorgan Switzerland
• Two PetroSaudi businessmen convicted of fraud and money laundering in Swiss court
• Malaysia initially sought $800 million in damages from JPMorgan
• Both JPMorgan and Malaysia agreed to withdraw pending appeals
• Goldman Sachs paid over $5 billion in global 1MDB penalties
• Scandal highlights regulatory scrutiny of banks’ compliance controls

JPMorgan Chase will pay $330 million to resolve claims linked to the 1MDB sovereign wealth fund, the bank and the Malaysian government confirmed in a joint statement on Friday.

The settlement closes a civil lawsuit brought by Malaysia in 2021, which accused JPMorgan’s Swiss unit of negligence, breach of contract, and conspiracy to defraud in connection with the misappropriation of billions from 1MDB. 

The agreement, which comes without admission of liability, will see funds deposited into Malaysia’s Assets Recovery Trust Account. Both sides also agreed to withdraw all pending appeals.

The scandal, centered on financier Jho Low and associates accused of siphoning more than $4.5 billion from 1MDB between 2009 and 2014, has haunted global banks for years. 

JPMorgan was one of several institutions targeted in Malaysia’s civil suits, alongside Deutsche Bank and NatWest’s Coutts private bank. Malaysia initially sought $800 million from JPMorgan, according to court filings.

In a statement, the bank said, “We appreciate the collaboration with the Malaysian government in resolving past matters related to 1MDB, which have been thoroughly reviewed. 

Since then, we’ve enhanced our controls, earning the trust of regulators in Switzerland and beyond.”

The payout coincided with a separate announcement from Switzerland’s attorney general. Swiss authorities fined JPMorgan $3.7 million after finding that the bank had failed to implement adequate measures to prevent aggravated money laundering tied to transfers of $217.4 million. 

The transfers, processed through JPMorgan in Switzerland between October 2014 and July 2015, were linked to oil deals supposedly backed by the Saudi government.

Two businessmen connected to that venture, 1MDB PetroSaudi, were convicted in Swiss criminal court last year of fraud, money laundering, and criminal mismanagement.

Although significant, JPMorgan’s penalty pales in comparison to Goldman Sachs, the institution most severely impacted by the scandal. 

Goldman has paid over $5 billion in global settlements, including $174 million in clawed-back compensation from executives such as CEO David Solomon and President John Waldron, though the bank insists neither had knowledge of wrongdoing. 

Goldman also admitted to paying more than $1 billion in bribes to secure underwriting business linked to 1MDB.

For JPMorgan, the resolution marks another step in closing the chapter on a scandal that has cast a long shadow across international finance. 

Yet the fines underline regulators’ continuing focus on the responsibilities of major banks in preventing money laundering and ensuring compliance.