1MDB work: Regulator asks Goldman for more info

NEW YORK • New York's top banking regulator has asked Goldman Sachs Group to supply more information about its work for a Malaysian investment fund, amid investigations into whether any money- laundering, sanction violations or other misconduct had occurred.

Ms Maria Vullo, head of New York's Department of Financial Services, asked in a letter on Thursday for a meeting with bank officials by the end of the month.

She said she wants updated information on due diligence the bank performed for the transfer of proceeds from three bond offerings it underwrote for 1Malaysia Development Berhad (1MDB).

Other areas of interest include the timing of disclosures, data on bond trading and transactions, and documents on coupon and interest payments, the letter shows.

While it has not been accused of any wrongdoing, Goldman Sachs has come under intense scrutiny by the authorities over its role in underwriting US$6 billion (S$8.05 billion) of bond sales for 1MDB.

The government fund is at the centre of several international probes into suspected corruption and money-laundering by public officials. Just two months ago, the New York regulator pressed the investment bank for an overview of those inquiries.

"We are aware of their interest in this matter and have been in dialogue with them on it for some time," said Mr Jake Siewert, a spokesman for Goldman Sachs. Prosecutors in at least four countries - Singapore, Switzerland, Luxembourg and the United States - are looking into money flows tied to 1MDB.

In the US, the Justice Department, Federal Reserve and Securities and Exchange Commission also are examining Goldman Sachs' dealings with 1MDB. The authorities sought copies of any slide presentations made to prosecutors in the US or abroad, and any suspicious activity reports filed. It also asked Goldman about any internal review on whether bank secrecy laws were violated or red flags ignored, the person said.

BLOOMBERG

A version of this article appeared in the print edition of The Straits Times on August 06, 2016, with the headline '1MDB work: Regulator asks Goldman for more info'. Print Edition | Subscribe