JPMorgan (JPM) to Pay Malaysia $330 Million in 1MDB Settlement

JPMorgan Chase & Co. (NYSE:JPM) is placed 6th on our list of the best stocks to buy. On August 22, JPMorgan announced that it will pay the Malaysian government $330 million to settle its involvement in the multibillion dollar 1Malaysia Development Berhad (1MDB) state fund scandal. The settlement follows Swiss authorities finding JPM guilty and fining it for not stopping money laundering in its dealings with 1MDB.

Malaysian and American investigators indicated that at least $4.5 billion was taken from 1MDB through an international scheme that ran from 2009 to 2014.

In a joint statement, JPMorgan and the Malaysian government commented that the former will pay the settlement into Malaysia’s 1MDB Assets Recovery Trust Account without admitting liability. The agreement settles all current and future claims and prevents either side from taking further legal action related to 1MDB. Both parties will also drop all appeals tied to the lawsuit 1MDB had filed against the JPMorgan unit in the Kuala Lumpur High Court.

The Swiss Attorney General’s Office said that JPMorgan’s Swiss unit was guilty of not having proper safeguards to stop aggravated money laundering linked to 1MDB and fined it 3 million Swiss francs, equivalent to $3.71 million. The case was tied to two oil company executives convicted last year of embezzling over $1.8 billion from the fund.

JPMorgan commented that it has since strengthened its controls and regained regulators’ trust.

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