US to return $200m to Malaysia as part of 1MDB probe

The US government has begun to return around $200m to Malaysia after seizing assets related to the scandal-hit state fund 1MDB, the two countries confirmed today.

Since 2016 the US Department of Justice (DoJ) has filed lawsuits to seize around $1.7bn of goods allegedly bought with funds stolen from 1MDB, including a private jet, luxury property, artwork and jewellery.

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The US has begun to return the first installment of funds recovered, US ambassador to Malaysia, Kamala Shirin Lahkdhir, said in a statement.

“We are extremely pleased that this first tranche of assets from this Justice Department investigation is being transferred back to Malaysia, demonstrating the U.S. commitment to return these assets for the benefit of the people of Malaysia,” she said.

At least six countries, including the US, Singapore and Switzerland, are investigating alleged money laundering at 1MDB.

Read more: 1MDB: Former Malaysian Prime Minister's trial postponed

Former Malaysian prime minister Najib Razak, who set up the fund in 2009, is currently on trial on charges of money laundering and corruption. Razak denies any wrongdoing.

Deloitte has been fined £400,000 for failing to report irregularities relating to the fund and KPMG and Goldman Sachs are facing investigations into their roles in the scandal.