GERMANY’S Deutsche Bank is being investigated by the US Department of Justice for its work with 1Malaysia Development Bhd, including helping the state investor raise US$1.2 billion (RM4.95 billion) in 2014.

Bloomberg, quoting a Wall Street Journal report, said the probe into alleged corruption and money-laundering is being assisted by former Goldman Sachs banker Tim Leissner, who last year pleaded guilty for his role in the massive scandal.

Deutsche Bank, in a statement, said it has “cooperated fully” in authorities’ 1MDB enquiries, and highlighted asset forfeiture documents filed earlier by DoJ that showed the Malaysian firm had misled the bank.

“This is consistent with the bank’s own findings.”

The investigation comes as the bank is carrying out a massive overhaul after a decade in which it paid some US$18 billion in fines and other legal costs, and saw its headquarters raided and executives questioned in numerous probes on three continents.

Earlier this week, it said it will slash a fifth of its 91,000 employees and quit some ventures in a bid to boost profitability.

Previously, Deutsche Bank was questioned by Singaporean authorities investigating possible ties between a former executive who worked at both the bank and Goldman Sachs, and wanted financier Low Taek Jho, believed to be the mastermind of the 1MDB fraud.

WSJ said US prosecutors are now examining the same executive.

Investigations into 1MDB have focused mainly on the US$6 billion it raised in 2012 and 2013, with the deals handled by Goldman Sachs, which took some US$600 million in fees.

Leissner, formerly the Southeast Asia head for the New York-based bank, has pleaded guilty to US charges of conspiring to launder money and violating the Foreign Corrupt Practices Act.

As part of his deal, he agreed to forfeit US$43.7 million, and admitted to bribing officials in Malaysia and the United Arab Emirates to get bond deals for Goldman Sachs.

The whereabouts of Low, meanwhile, remain a mystery. – July 11, 2019.