Goldman Sachs has received more than $3 billion in fines for its involvement in the one horse company scandal

category:Finance
 Goldman Sachs has received more than $3 billion in fines for its involvement in the one horse company scandal


Screenshot of the SFC

In a press release, the SFC pointed out that Goldman Sachs Asia has extensively participated in the bond offering of 1mdb and has collected more than one-third of the total revenue generated from the three bond sales; Goldman Sachs Asia has made serious mistakes and deficiencies in risk, compliance and anti money laundering monitoring measures and management supervision, and has failed to properly deal with a number of cases of money laundering or bribery In case of early warning signs, the relevant bond sale shall be allowed to continue.

According to a survey conducted by the Hong Kong Securities and Futures Commission, the bond trading of 1mdb was obtained for Goldman Sachs by Tim Leissner (male), who was the head of Goldman Sachs Asia and the managing director of investment banking division at a key time. Leissner admitted in August 2018 that he had conspired with Malaysian financier lowtaek jho (also known as jho low) (male) and other people to conspire with him for money laundering and criminal charges of violating the FCPA. Officials in Malaysia and Abu Dhabi paid bribes and kickbacks to acquire and maintain business from 1mdb for Goldman Sachs, including the issuance of these bonds.

The investigation by the SFC found that Leissner could freely control the execution of these 1mdb bond issues, so that he could provide misleading information or concealed information to Goldman Sachs with proper and sufficient questioning.

According to the SFC, Goldman Sachs reached a settlement with the Malaysian government on the criminal legal procedures with a guarantee of $2.5 billion and a return of $1.4 billion in assets.

At the same time, on October 22 local time, the Federal Reserve issued a statement, imposing a $154 million fine on Goldman Sachs. In addition to the U.S. Department of justice, the securities and Exchange Commission and the Federal Reserve Board, a number of regulators in the United Kingdom, Singapore and other countries have participated in the collaborative supervision of Goldman Sachs, he said. These institutions have so far issued about $2.9 billion (19.4 billion yuan) in fines against Goldman Sachs.

According to an announcement issued by the US Department of justice, Goldman Sachs admitted to violating the Foreign Corrupt Practices Act (FCPA) and admitted to bribing Malaysian and Abu Dhabi officials for more than $1 billion to obtain lucrative business, including underwriting about $6.5 billion for three bond transactions of 1Malaysia development Bhd (1mdb), from which Goldman earned hundreds of millions of dollars in underwriting fees.

US Department of justice website screenshot

Goldman Sachs today takes responsibility for bribing senior foreign officials and other businesses related to 1mdb, said Brian R. labert, acting Attorney General of the Department of justices criminal division

Over the course of five years, Goldman has been involved in a wide range of international corruption programs, bribing more than $1.6 billion to senior government officials in a number of countries, so that the company can earn hundreds of millions of dollars in revenue. In terms of fees, it damages the interests of the Malaysian people and the reputation of American financial institutions operating abroad.

The U.S. Department of justice has found that between 2009 and 2014, Goldman Sachs directly or indirectly bribed more than $1.6 billion to foreign officials in Malaysia and Abu Dhabi, including the Malaysian government, 1mdb, Abu Dhabis state-owned and state-controlled sovereign wealth funds, and international oil Investment Corporation (IPIC) through a plan to ensure that Goldman Sachs gets 1mdb funding Underwriting qualification for fund raising.

In 2012 and 2013, Goldman raised $6.5 billion for 1mdb through three bond issues, claiming to invest in power plants and oil drilling companies.

On the same day, the financial conduct authority (FCA) and the Prudential Regulation Authority (PRA) announced that they would impose a total fine of 96.6 million pounds (US $120 million) on Goldman Sachs international. The FCA and pra fines are part of a $2.9 billion global coordinated resolution with Goldman Sachs Group (GSG) and its subsidiaries.

Screenshot of the website of the financial conduct authority

Mark steward, executive director of enforcement and market oversight at FCA in the UK, said: Goldman Sachs has a vital role to play in combating financial crime and helping to maintain the integrity of the financial system. Goldmans failure to take appropriate action in this context shows that it is not taking this responsibility seriously. When faced with allegations of bribery and employee misconduct, the companys mismanagement allowed serious misconduct to be resolved. There is no amnesty for companies dealing with financial crimes, and the amount of Goldman Sachs international fines reflects that. Sam woods, deputy director of the prudential regulation authority and chief executive officer of PRA, said: failure to manage the risk of financial crime could have a significant adverse impact on the safety and soundness of the company. We expect companies to manage risks prudently and comprehensively, including financial crime risks, and attach great importance to accusations of bribery and misconduct. The seriousness of the case is reflected in the amount of the PRA fine. Source: surging news editor: Zhong Qiming_ NF5619

Mark steward, executive director of enforcement and market oversight at FCA in the UK, said: Goldman Sachs has a vital role to play in combating financial crime and helping to maintain the integrity of the financial system. Goldmans failure to take appropriate action in this context shows that it is not taking this responsibility seriously. When faced with allegations of bribery and employee misconduct, the companys mismanagement allowed serious misconduct to be resolved. There is no amnesty for companies dealing with financial crimes, and the amount of Goldman Sachs international fines reflects that.

Sam woods, deputy director of the prudential regulation authority and chief executive officer of PRA, said: failure to manage the risk of financial crime could have a significant adverse impact on the safety and soundness of the company. We expect companies to manage risks prudently and comprehensively, including financial crime risks, and attach great importance to accusations of bribery and misconduct. The seriousness of the case is reflected in the amount of the PRA fine.