The Asian subsidiary of American bank Goldman Sachs has resolved a corruption and bribery scandal by pleading guilty in the United States.
The charges relate to the 1Malaysia Development Berhad (1MDB) fund scandal, which brought down the Malaysian government at the time.
Around $2.7bn (£2bn, €2.3bn) raised for the fund in bond offerings, arranged by Goldman Sachs, were used to finance lavish lifestyles including purchasing paintings by Van Gogh and Monet, yachts and a boutique hotel in Beverly Hills.
According to US newspaper The Wall Street Journal, the Goldman subsidiary agreed to pay more than $2bn in penalties to the Justice Department and US securities and banking regulators.
The settlement was negotiated over two years with prosecutors in Brooklyn and the Justice Department. The plea deal is reportedly going to be announced on 22 October 2020.
International Adviser reported in July 2020 that Goldman Sachs agreed to pay $3.9bn to the Malaysian government as part of its settlement.