High Court clears way for $3.5b suit against StanChart in IMDB-linked claim

The Singapore High Court has dismissed an attempt by Standard Chartered Bank in the Republic to strike out a US$2.7 billion (S$3.5 billion) lawsuit filed by the liquidators of three entities tied to the massive fraud linked to 1Malaysia Development Berhad (1MDB).

- Angela Tan Senior Business Correspondent

With the High Court denying StanChart’s application, the case is now set to proceed.

StanChart told The Straits Times that the bank “disagrees with the decision and will be filing an appeal”.

The claim was brought by court-appointed liquidators, Kroll’s Ms Angela Barkhouse and Ms Toni Shukla, on behalf of Alsen Chance Holdings, Blackstone Asia Real Estate Partners and Brightstone Jewellery.

The liquidators contend that between 2009 and 2013, StanChart permitted more than 100 intra-bank transfers that helped conceal the movement of stolen funds and ignored clear red flags.

They allege that the bank’s actions breached Singapore’s anti-money laundering controls and due diligence obligations, resulting in losses exceeding US$2.7 billion and S$20 million in public funds.

Among the cited transactions was a US$150 million transfer from an account held by Blackstone to the personal account of former Malaysian prime minister Najib Razak.