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NY regulator seeks details from Goldman on Malaysian fund: source
[NEW YORK] New York state regulators have asked Goldman Sachs Group Inc for details about probes into billions of dollars it raised in a bond offering for a scandal-hit Malaysian fund, a person familiar with the matter said on Friday.
The New York State Department of Financial Services, in a letter sent late Thursday, asked Goldman for a report on its in-house investigation into the matter, as well as others by US and foreign regulators, said the person, who was not authorised to publicly discuss the matter.
The letter to Malaysian state investment fund 1Malaysia Development Bhd (1MDB) concerns whether Goldman complied with US anti-money laundering law, the person said.
A Goldman Sachs spokesman declined to comment.
The fund, which was founded by Malaysian Prime Minister Najib Razak in 2009 shortly after he came to office, is being investigated for money-laundering in at least six countries.
US law enforcement officials are attempting to identify whether Goldman violated federal law after failing to flag a transaction in Malaysia, the Wall Street Journal reported on Monday.
The probe concerns US$3 billion raised by Goldman through a 1MDB bond offering. The focal point is whether the bank complied with the Bank Secrecy Act, the main US anti-money laundering law.