The 1Malaysia Development Berhad (1MDB) scandal is a landmark case in global financial crime, exposing how a state-owned development fund intended for national economic progress was hijacked for massive corruption and money laundering. Initiated in 2009 under then-Prime Minister Najib Razak, 1MDB became a conduit for siphoning billions of dollars through complex offshore structures and shell companies. High-level political links, including Najib himself and financier Jho Low, exploited regulatory gaps and weak corporate governance for personal gain. The scandal underscores critical failures in financial oversight and anti-money laundering controls, involving major international banks and spanning multiple jurisdictions. Its repercussions continue to shape global anti-corruption and AML policies, marking a cautionary tale of kleptocracy on an unprecedented scale.
1Malaysia Development Berhad (1MDB) was a Malaysian state investment fund established in 2009 aimed at promoting national development. However, it became embroiled in a massive corruption and money laundering scandal when billions of dollars were misappropriated by high-level officials, including then-Prime Minister Najib Razak, and their associates. The funds were laundered through complex offshore structures and shell companies, with proceeds used for luxury assets and personal enrichment. The scandal triggered criminal investigations and asset recovery efforts across multiple countries, leading to Najib’s conviction and a significant political upheaval in Malaysia. The 1MDB scandal exposed systemic governance failures and highlighted major risks in global financial systems abused for kleptocracy.
