Malaysia's 1MDB Asset Recovery Task Force announced that a lawsuit filed against DBS Bank Ltd in the Singapore High Court centers on five accounts established in 2013. These accounts were opened by four companies linked to Malaysian businessman Tan Kim Loong, also known as Eric Tan, who is a known associate of fugitive financier Jho Low and allegedly acted as his proxy. The claim, filed by the liquidators of the four companies—Affinity Equity International Partners Ltd, Blackrock Commodities (Global) Ltd, Platinum Global Luxury Services Ltd, and TKIL Global Investments Ltd—alleges that Tan was the sole beneficial owner of these companies and a signatory to each of the five DBS accounts.
The lawsuit claims that between 2013 and 2014, more than $1 billion in funds misappropriated from 1Malaysia Development Bhd (1MDB) and SRC International flowed through these four companies. The funds were allegedly moved between the companies without legitimate business purposes before being paid to various third parties, including jewelers, a private jet charterer, and nightclubs. It is also alleged that some of the money was used for the purchase of a superyacht.
The 1MDB task force welcomed the liquidators' decision to pursue the claim, emphasizing that banks should question suspicious transactions, particularly those involving shell companies and large sums moved in unusual patterns, which they contend did not happen in this instance. DBS Bank, however, stated that it "categorically rejects and will vigorously resist" the claim for S$1.3 billion ($1 billion) in damages. The task force stressed that any money recovered from this claim would be returned to the Malaysian people, who were the victims of the fraud.
