U.S. investigators are examining whether Goldman Sachs violated the Bank Secrecy Act when it didn't inform regulators about a potentially suspicious transaction involving Malaysia's embattled state fund 1MDB, the Wall Street Journal reported Tuesday.
After raising $3 billion via a bond issue for the troubled fund, Goldman sent the proceeds to a Swiss bank account controlled by 1MDB, with much of that amount then disappearing offshore and some reappearing in the prime minister's bank account, the WSJ reported, citing people familiar with the matter and bank-transfer information.
At issue is whether Goldman should have viewed the transfer to the Singapore branch of Swiss private bank BSI instead of a large global bank as suspicious and a potential sign the funds weren't being used for their intended purpose, the WSJ said.
Goldman Sachs did not immediately respond to a request for comment.
The funds were meant to finance a major real-estate project in Kuala Lumpur, Malaysia's capital, the WSJ said.