‘A bank should ask questions’: Five DBS accounts linked to Jho Low associate in 1MDB case
The 1MDB Asset Recovery Task Force says lenders are ‘gatekeepers of the financial system’
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[SINGAPORE] Court-appointed independent liquidators for 1Malaysia Development Berhad (1MDB)-linked companies filed a statement of claim in the Singapore High Court which noted that five accounts in question were opened with DBS in 2013.
Upon money reaching the accounts, significant movement was tracked, the 1MDB Asset Recovery Task Force said on Thursday (Sep 10).
“It was moved back and forth between the four companies for no legitimate reason, and paid out to third parties, including jewellers, a private jet charterer and nightclubs,” it wrote in a statement.
The money was also paid out in connection with the purchase of a superyacht.
The four entities are:
- Blackrock Commodities (Global);
- Affinity Equity International Partners;
- Platinum Global Luxury Services; and
- TKIL Global Investments
This comes after a lawsuit was filed against the bank by four entities under liquidation and the companies’ liquidators, Jason Aleksander Kardachi and Karnjote Singh S/O Jarmal Singh, a bourse filing from DBS noted on Wednesday.
Between 2013 and 2014, over S$1 billion stolen from 1MDB and SRC International passed through four companies.
The bank account opening papers for all four companies named Tan Kim Loong, better known as Eric Tan, as their sole beneficial owner.
He was also a signatory on every one of the five accounts. Eric Tan is a Malaysian national and a known associate of Jho Low, and acted as a proxy for him.
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Between 2013 and 2014, more than US$1 billion stolen from 1MDB and SRC International passed through these four companies.
Money to be “returned to the Malaysian people”
DBS “categorically reject(ed)” the S$1.3 billion claim for damages in a lawsuit filed by several entities linked to the 1MDB scandal.
The bank on Wednesday said it “has consulted its legal advisers, and...will vigorously resist the claim”.
“It is a matter of public record that there have been global recovery efforts relating to 1MDB, supported by legal counsel since 2018. All this time, there was no claim against DBS,” it added.
The 1MDB Asset Recovery Task Force said banks are the “gatekeepers of the financial system”.
“When shell companies with no business move large sums in circles like this, then pay it out to luxury goods dealers, a bank should ask questions. Those questions were not asked,” it said on Thursday.
The task force added that since the money is owed to 1MDB, any recovery by the four companies and court-appointed liquidators is a “recovery for Malaysia”.
“This is a proper claim by court-appointed liquidators, and any money recovered will be returned to the Malaysian people.”
Additional reporting by Sharanya Pillai
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