Major Lawsuit Alleges Multibillion-Dollar Fraud Scandal Involving Offshore Bank in Barbados

Steps

He also stated that the Central Bank’s Intervention Policy Framework “outlines the steps that can be taken to address deficiencies or non-compliance by licensed entities. These measures include administrative penalties, suspension of activities or the revocation of a licence where necessary. Any such enforcement actions are guided by due process and aim to maintain the integrity of the Barbadian financial system. Should investigations confirm

links between the allegations and ABTL’s operations in Barbados, appropriate and proportionate measures will be implemented.

“The Central Bank is committed to ensuring that Barbados retains its reputation as a wellregulated and transparent financial jurisdiction. We remain actively engaged in monitoring this situation and will continue to take the necessary steps to protect the stability of our financial system,” Greenidge added.

Dubbed one of the largest financial scandals in history, the claim alleges that Amicorp played a pivotal role in facilitating the laundering of more than US$7 billion in misappropriated 1MDB funds between 2009 and 2014. The claimants accuse Amicorp of fraudulent trading, dishonest assistance in breaches of fiduciary duty and conspiracy to commit unlawful acts.

They further allege that Amicorp established and managed an intricate network of shell companies, sham transactions and fraudulent financial structures that disguised the movement of stolen funds. The funds were allegedly funnelled through a global network spanning jurisdictions such as Singapore, Barbados, Curaçao, Hong Kong and the BVI.

Reports indicate that a key element of the claim is the alleged involvement of Amicorp Bank, which is registered in Barbados, that is accused of providing access for the fraud to the global financial system. Amicorp is alleged to have used fund entities and banking services to repeatedly cycle assets through 1MDB’s subsidiaries, creating the illusion that the stolen assets were legitimate investments generating returns, “when in fact they had been misappropriated”.

A spokesperson for 1MDB board told the Malaysia media: “There is, in our view, strong evidence to suggest that Amicorp – at the highest levels – knew they were involved in a dishonest and illegal money laundering scheme designed to transfer large sums of cash away from its intended beneficiary, the people of Malaysia.

“We are confident that our claim will succeed and are committed to holding accountable the institutions and individuals involved in misappropriating money from Malaysia’s sovereign wealth fund, while ensuring the recovery and restitution of these assets back to the Malaysian people,” the spokesperson added. (MB)