FCA and PRA fine Goldman Sachs International £96.6 million for risk management failures in connection with 1MDB

The Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have fined Goldman Sachs International (GSI) a total of £96.6 million (US$126 million) for risk management failures connected to 1Malaysia Development Berhad (1MDB) and its role in three fund raising transactions for 1MDB.
Published on 22 October 2020

Final notice to Goldman Sachs International

Notes to editors

  1. FCA Final Notice
  2. PRA Final Notice
  3. Goldman Sachs International (GSI) is an investment banking, securities and investment management firm headquartered in London, authorised and regulated by the FCA and the PRA. GSI is an indirect wholly owned subsidiary of The Goldman Sachs Group, Inc. GSI acts as a material booking entity for bond transactions underwritten and purchased by Goldman Sachs outside the USA.
  4. 1MDB is a Malaysian state-owned development company created to pursue investment and development projects for the economic benefit of Malaysia and its people. As alleged in US court filings, between approximately 2009 and 2014, as 1MDB raised money to fund its projects billions of dollars were misappropriated and fraudulently diverted from 1MDB, including from funds raised from the US$6.5 billion 1MDB bond transactions.
  5. PRA Principles for Businesses
  6. FCA Principles for Businesses
  7. PRA Fundamental Rules
  8. PRA Dear CEO letter dated 5 September 2019: Money Laundering/Terrorist Financing risks in prudential regulation.

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