Politics

1MDB caught up in Singapore's largest money-laundering probe: WSJ

Singapore's state prosecutors have declared the cross-border investigation involving embattled Malaysian state investment fund 1Malaysia Development Berhad (1MDB) the largest money laundering probe the country has ever undertaken, the Wall Street Journal reports.

The prosecutors' statements, the Wall Street Journal reports, were made Friday during a bail hearing for Yeo Jiawei, a former wealth manager at Swiss private bank BSI SA's Singapore branch, who has been charged with money laundering in relation to the 1MDB investigation.

Manan Vatsyayana | AFP | Getty Images

The Singapore investigation focuses on money alleged to have originated at 1MDB and passed through BSI's Singapore branch,

The High Court overturned an earlier decision from Singapore's State Court to grant Yeo bail, on the grounds there could be a risk he would interfere with witnesses.

On Friday Malaysian Prime Minister Najib Razak announced the central bank governor has asked the police to investigate the Wall Street Journal for leaking a confidential document related to an inquiry into scandal-hit government fund.

Protesters demanding Prime Minister Najib Razak's resignation during a rally in Kuala Lumpur.
Malaysian PM says police to investigate Wall Street Journal over leaked document
Signage for 1Malaysia Development Bhd. (1MDB) is displayed at the site of the Tun Razak Exchange (TRX) project in Kuala Lumpur, Malaysia.
Malaysia 1MDB investigations didn’t examine key evidence, interview Najib: WSJ
Hanspeter Brunner, former head of Asia for BSI Bank
Singapore's MAS shuts 1MDB-linked BSI Bank over gross misconduct

The WSJ had earlier reported that Malaysia's investigations into IMDB didn't examine key evidence or interview Prime Minister Najib Razak. The PM's office issued a strongly worded response to the WSJ report, accusing the paper of bias and publishing "unverified lies."

A spokeswoman for Dow Jones, which publishes the Wall Street Journal, said: "We stand behind our fair and accurate reporting of this evolving story and remain committed to providing robust coverage of events in Malaysia."

You can read the full WSJ report here.

Follow CNBC International on Twitter and Facebook.