The Department of Justice (DoJ) claims that at least $3.5 billion has been stolen from 1Malaysia Development Berhad (1MDB). This scandal alleged that between 2009 and 2015, monies were laundered from the fund through a complex web of opaque transactions and fraudulent shell companies.
Singapore in particular was caught in the fallout as investigations by the Monetary Authority of Singapore (MAS) revealed 1MDB-related funds flowed through multiple financial institutions in the city-state. The MAS has since taken clear steps to increase its anti-money laundering (AML) and counter terrorist financing (CTF) expertise. This paper explores the ongoing fallout from this event, pinpointing areas of greater scrutiny from regulators as well as offering some advice on what actions financial institutions can take to enhance their internal anti-money laundering (AML) controls.