The investment bank will pay a record sum for violating bribery laws in the 1MDB corruption affair.
Read more1MDB corruption scandal
By Jonathan Head
South East Asia correspondent
Bank pleads not guilty in 1MDB corruption scandal
Copyright: Getty ImagesImage caption: David Cameron and Najib Razak, Malaysia's ex-prime minister It is one of the world's greatest financial scandals. Billions of dollars from state fund 1MDB meant to help the Malaysian people went missing, disappearing into the shadows of the global financial system.
Today three units of Goldman Sachs have pleaded not guilty over its alleged role in the scandal, according to local media.
Billions were allegedly looted from the Malaysian fund in a globe-spanning fraud, which reportedly involved the country's ex-prime minister Najib Razak (pictured above with a former British prime minister) and his inner circle.
The bank's role has been under scrutiny as it helped arrange a series of bond issues worth $6.5bn (£5bn) for the investment vehicle 1MDB.
The units were accused of giving false statements that led to large sums being misappropriated in relation to the bond issues.
1MDB: The playboys, PMs and partygoers around a global financial scandal
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Video caption: Najib Razak : Ex-Malaysia PM's second fraud trial begins Najib Razak faces charges over an alleged multibillion-dollar fraud involving the state fund 1MDB.
By Heather Chen, Kevin Ponniah and Mayuri Mei Lin
BBC News
DoJ discussions over 1MDB
Copyright: Getty ImagesSenior US Department of Justice (DoJ) officials are considering a requirement that Goldman Sachs plead guilty over its role in the Malaysian 1MDB corruption scandal, as part of a potential settlement, sources have told the FT.
If this comes to pass, it will be the toughest penalty that the DoJ could impose on the bank.
Goldman spokesman Jake Siewert told the FT: “We do not believe that such a charge would be warranted by the facts of the case or the law, particularly because senior management was unaware of the criminal activity by [former Goldman Sachs banker] Tim Leissner and his associate who took extraordinary efforts to hide their part in the illegal scheme from management, compliance, and legal functions at the firm.”
Superyacht linked to 1MDB scandal sold for $126m
Copyright: Getty ImagesMore on the 1MDB scandal - a superyacht allegedly bought with money stolen from the fund will be sold to $126m (£95.9m).
The sale of the yacht to casino operator Genting Malaysia marks the country's largest recovery yet of 1MDB cash.
Equanimity - decked out with a 20m swimming pool, spa and sauna, movie theatre and helipad - has been moored off the coast of Malaysia for the past five months, on show for potential buyers.
