Settlement details

JPMorgan Chase & Co. has agreed to pay $330 million to the Malaysian government to resolve claims stemming from its involvement in the 1Malaysia Development Berhad (1MDB) financial scandal. The agreement, announced on Friday, August 22, 2025, involves a contribution to MalaysiaS Assets Recovery trust Account as reported by the Financial Times, with JPMorgan stating it makes no admission of liability.

The settlement is intended to resolve all existing and potential claims, preventing future litigation related to 1MDB. This marks a meaningful step in Malaysia’s efforts to recover funds lost in one of the largest financial scandals in history.

The 1MDB Scandal: A Brief Overview

the 1MDB scandal involved the alleged misappropriation of at least $4.5 billion from Malaysia’s sovereign wealth fund. According to investigations, the funds were siphoned off through complex schemes orchestrated by Malaysian financier Jho Low, who remains at large and maintains his innocence.

The scandal led to the conviction and sentencing of former Malaysian Prime Minister Najib Razak, who received a six-year prison sentence as reported in February 2024. Numerous international financial institutions were also implicated.

JPMorgan’s Role and swiss Fine

In 2021, 1MDB filed lawsuits against multiple banks, including JPMorgan’s Swiss unit, seeking to recover losses. The lawsuits alleged fraudulent breach of duties, conspiracy, and breach of trust.

Separately,Swiss prosecutors fined JPMorgan SFr3 million ($3.7 million) on Friday for failing to adequately prevent money laundering related to the 1MDB scandal. The fine stemmed from SFr174 million in overseas transfers processed by the bank between October 2014 and july 2015.

Other Institutions Involved

JPMorgan is not the only financial institution to face consequences for its role in the 1MDB affair. Goldman Sachs reached a $3.9 billion settlement with Malaysia in 2020, admitting to paying over $1 billion in bribes to secure underwriting work and paying nearly $3 billion in criminal fines to the US Department of Justice.

In 2020,Goldman Sachs docked the pay of its CEO,David Solomon,and President,John Waldron,citing “institutional failure,” though both maintained they were unaware of any illicit activity. Tim Leissner, a former Goldman banker central to the scandal, was sentenced to two years in prison earlier in 2025 after pleading guilty to charges including bribery and money laundering.

JPMorgan’s Response

in a statement released on Friday, JPMorgan expressed its appreciation for the collaboration with the Malaysian government and highlighted its enhanced controls. The bank stated that these improvements have earned the trust of regulators in switzerland and beyond.