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GOLDMAN Sachs Group Inc. has struck a long-awaited pact with the U.S. Department of Justice to pay more than $ 2 billion for the bank’s role in Malaysia’s 1MDB scandal, and the deal could be announced in a few days, according to people familiar with the matter.
The agreement, which is part of an international action, will allow the parent company to avoid a criminal conviction in the United States, according to the people, who asked not to be identified over the confidential conversations. The payment to the Justice Department is broadly in line with the bank’s previous reservations and analyst estimates.
The deal, expected to come just weeks before the U.S. presidential election, would remove the bank’s uncertainty after years of investigations and negotiations with the Justice Department over the company’s fundraising for the 1MDB investment fund. .
This follows an agreement in July to settle an investigation related to Malaysia, in which the bank promised to pay $ 2.5 billion. Malaysia dropped the criminal charges against the New York-based company in early September.
A representative for Goldman Sachs declined to comment, and representatives for the Justice Department did not respond to messages seeking comment.
In total, Goldman Sachs can pay approximately $ 5 billion once settlements with Malaysia, the Justice Department, and other agencies are accounted for.
In Singapore, authorities plan to impose a financial penalty and issue a warning with conditions, and if the company breaches them, Goldman Singapore could be prosecuted, people familiar with the matter said. The Monetary Authority of Singapore, the Attorney General’s Office and the police did not immediately respond to an email seeking comment.
Investigations by the Wall Street firm focused on its work raising $ 6.5 billion in 2012 and 2013 for the fund formally known as 1Malaysia Development Bhd., Much of which was allegedly subsequently diverted by people related to the former prime Minister of the country, Najib Razak. Goldman’s investment banking group, led at the time by now CEO David Solomon, raised $ 600 million from bond sales.
Authorities in Asia, the US and Europe have spent years tracing the conspiracy and tracing cash and assets around the world, including condos, jewelry and art.
Goldman has long blamed dishonest employees, stating that it had no idea that the money it helped raise would be diverted from development projects. A former Goldman Sachs associate, Tim Leissner, has pleaded guilty in the United States to conspiring to launder money and violating foreign anti-bribery laws. Another executive was charged with bribery crimes abroad. – Bloomberg
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