At the same time, the OAG announced a partial discontinuation of proceedings against J.P. Morgan Suisse, according to a statement released on Friday.

In November 2022, criminal proceedings had been opened against the subsidiary of the Wall Street bank in the corruption and embezzlement case surrounding the Malaysian state fund 1Malaysia Development Berhad (1MDB).

The bank was accused of failing to take all necessary and reasonable organizational precautions to prevent aggravated money laundering. The corresponding acts were committed in the period between October 2014 and July 2015.

The total outflows amounted to around 174 million francs, the OAG further wrote. The matter primarily concerned the bank’s relationships with the company Petrosaudi and its executives.

These were convicted in August 2024 by the Federal Criminal Court because they had embezzled assets of more than 1.8 billion francs from the state fund.

1.4 Billion Malaysian Ringgit as Compensation

The conviction takes place in connection with the criminal proceedings conducted by the OAG regarding the assets embezzled from the fund. Since the state fund, which is participating in the proceedings as a private claimant, declared that it will receive compensation in the amount of 1.4 billion Malaysian Ringgit, the OAG did not assert a substitute claim. That corresponds to approximately 268 million Swiss francs.

When determining the penalty, the OAG also took into account the bank’s cooperation as well as the long period of time since the offenses.

The parties have communicated that they are waiving any objection or appeal against the penalty order and the partial discontinuation of proceedings. This makes the decision legally binding.