The lawsuit seeks damages of more than US$1 billion from the financial services provider
SCANDAL-HIT Malaysian state fund 1MDB and its subsidiaries have filed a claim against Amicorp and co-founder Toine Knipping for allegedly facilitating more than US$7 billion in fraudulent transactions.
The lawsuit accuses Amicorp, a Hong Kong-based financial services provider, of playing “a vital role” in defrauding 1MDB by aiding the laundering of misappropriated funds between 2009 and 2014.
Amicorp is said to have created and managed a complex scheme of shell companies, fake transactions and fraudulent financial structure to hide the funds’ origin and destination.
The stolen money was allegedly routed through a network spanning Singapore, Barbados, Curacao, Hong Kong and the British Virgin Islands.
The claim also accuses Amicorp of providing access to the global financial system via its subsidiary, Amicorp Bank.
The group had allegedly provided fund entities and banking services to “allow for the repeated cycling of assets through the claimants”, such as falsely leaving a paper trail to cover up the stolen funds.
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On Monday (Dec 23), a 1MDB spokesperson said that there is “strong evidence” to suggest that Amicorp was aware of its involvement in a “dishonest and illegal money laundering scheme”.
The lawsuit, filed in the British Virgin Islands on Dec 20 against eight Amicorp entities, seeks damages of more than US$1 billion from the financial services provider.
The spokesperson added: “We are confident that our claim will succeed and are committed to holding accountable the institutions and individuals involved…while ensuring the recovery and restitution of these assets back to the Malaysian people.”
1MDB also noted that Amicorp had previously faced regulatory action and fines in various markets.
This includes the Netherlands for “lack of customer due diligence or effective compliance functions”, as well as in Abu Dhabi for “falsifying documents and failing to maintain proper compliance arrangements, systems and controls”.
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