has reached into a settlement with the United States Department of Justice (DoJ), paying a fine of more than $2 billion for its involvement in the 1MDB scandal, Bloomberg reported on Tuesday.
The DoJ, in return, will drop the criminal proceedings against the investment bank.
Though the official announcement of the deal is expected to go public in the next few days, the publication reported on it citing multiple anonymous sources.
1MDB: The Scandal of a Prime Minister and a Bank
1Malaysia Development Berhad, popularly known as 1MDB, was a Malaysian state-owned fund that became a major financial scandal involving the country’s former prime minister, Najib Razak.
The Wall Street bank helped the fund in raising $6.5 billion in 2012 and 2013. Much of these funds were later siphoned by Najib’s close aides. The bank received $600 million as fees from the bond selling transactions.
The bank mostly put the blame for the wrongdoings on its former partner, , who pled guilty in the US for money laundering and bribery conspiracy.
Apart from the US prosecutors, Goldman Sachs is also being tailed by the authorities in Asia and Europe for its involvement in the financial scandal.
The bank already settled with the authorities in Malaysia, with a promise of paying $2.5 billion, and all criminal charges against it in the country were closed in September. Prosecutors in are moving towards a deal as well, but with some conditions. The bank might face criminal charges if it breaches these conditions.
The fine in the United States falls in line with what analysts predicted earlier. Furthermore, the move is said to be motivated by the uncertainties of the upcoming Presidential elections in the country.