US Fed sanctions former Goldman Sachs bankers over 1MDB money-laundering scandal

US Fed sanctions former Goldman Sachs bankers over 1MDB money-laundering scandal

The U.S. Federal Reserve said on Tuesday it has sanctioned former Goldman Sachs bankers for their role in a money-laundering scandal involving 1Malaysia Development Berhad (1MDB), Malaysia's state-owned investment fund.

Men walk past a 1Malaysia Development Berhad (1MDB) billboard at the fund's flagship Tun Razak
FILE PHOTO: Men walk past a 1Malaysia Development Berhad (1MDB) billboard at the fund's flagship Tun Razak Exchange development in Kuala Lumpur March 1, 2015. REUTERS/Olivia Harris

WASHINGTON: The U.S. Federal Reserve said on Tuesday it has sanctioned former Goldman Sachs bankers for their role in a money-laundering scandal involving 1Malaysia Development Berhad (1MDB), Malaysia's state-owned investment fund.

Tim Leissner and Roger Ng have been permanently barred from the banking industry for their involvement in "a scheme that illegally diverts billions of dollars from a Malaysian sovereign wealth fund."

Leissner did not admit or deny the charge, but agreed to a US$1.42 million fine.

(Reporting by Katanga Johnson; Editing by Bernadette Baum)

Source: Reuters

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