Luxembourg Prosecutors Look for Embezzlement at Malaysia's 1MDB
- Singapore central bank says it's reviewing its fund flows
- Fund faces ongoing probes into financial irregularities
Signage for the Tun Razak Exchange (TRX) project, developed by 1Malaysia Development Bhd. (1MDB), stands in Kuala Lumpur, Malaysia, on Thursday, July 9, 2015. 1MDB is at the center of a July 3 Wall Street Journal report that about $700 million may have moved through government agencies and firms linked to 1MDB before apparently ending up in accounts bearing Najib's name.
Photographer: Goh Seng Chong/BloombergAuthorities in Luxembourg and Singapore are investigating transactions involving 1Malaysia Development Bhd. as the Malaysian state fund faces expanding probes into allegations of embezzlement and money laundering.
Prosecutors in Luxembourg said they started an investigation of 1MDB, as the fund is known, after finding “concrete clues” of embezzlement from companies owned by the fund via accounts in Singapore, Switzerland and Luxembourg. In response to questions about 1MDB, the Singapore central bank said it is conducting a “thorough review of various transactions as well as fund flows” through its banking system.