The bank reiterated its point that the claims against it are “without merit.”

The Singapore High Court has upheld the dismissal of Standard Chartered Bank (Singapore) Limited's strike-out application, clearing the way for a $2.7 billion claim brought by liquidators to proceed to trial. This is the latest twist in the long-running legal fallout from the 1MDB scandal.

The ruling, handed down on 30 June, dismisses the bank's appeal against an earlier decision refusing to throw out the suit at a preliminary stage. The claim was brought by the court-appointed liquidators of three British Virgin Islands companies – Alsen Chance Holdings Limited, Blackstone Asia Real Estate Partners Limited and Brightstone Jewellery Limited – which the liquidators allege were used to channel misappropriated 1MDB funds. 

The liquidators claim that Standard Chartered authorised more than 100 intra-bank transfers between 2009 and 2013 that helped conceal the movement of misappropriated funds, while ignoring multiple red flags. 

Commenting on the decision, the liquidators said: "We welcome the High Court's decision on 30 June 2026 to uphold the dismissal of Standard Chartered Bank's strike-out application. This outcome reaffirms that the claims against the bank – including claims of dishonest assistance and breach of the bank's duties of reasonable skill and care – should properly proceed to trial, where the evidence can be fully examined."

In a statement emailed yesterday to WealthBriefingAsia, Standard Chartered said: "Standard Chartered will continue to vigorously defend against the claims. The recent decision in the bank’s strike-out appeal is not a decision on the merits of those claims. In any case, we respectfully disagree with the court’s decision and intend to apply for permission to file a further appeal.

“We would like to reinforce that these are claims against the bank brought by shell companies that misappropriated funds from 1Malaysia Development Berhad (1MDB) and had no legitimate business. We emphatically reject the claims of these fraudulent entities. Their claims are without merit,” the bank said, adding that its position has not changed since its 2 July 2025 statement. In that message, the bank said: “The liquidators acting for these companies have publicly stated that these were shell companies which did not engage in any legitimate business and were linked to fugitives Low Taek Jho and his associate Eric Tan. The companies are not affiliates of 1MDB. They operated under false pretences and acted as a conduit for funds misappropriated from 1MDB to launder monies. The transactions at issue date back to 2010. We reported the transaction activities of these companies, both before and at the time we shut their accounts in early 2013, and fully cooperated with the investigating authorities.” 

The claimants are represented by Lok Vi Ming SC, Joseph Lee, Mohd Haireez, Tan Kah Wai and Koo Jin Rong of LVM Law Chambers LLC. Lim Chee Wee Partnership of Kuala Lumpur acts as global co-ordinating counsel for all 1MDB-related asset recovery efforts in Malaysia and abroad. The liquidators of the claimants are Angela Barkhouse and Toni Shukla, both of Kroll.

The liquidators added: "The liquidators remain resolute in their commitment to recover the assets misappropriated from the companies, and to hold accountable those responsible for facilitating the misappropriation of said assets as part of the wider fraud involving 1MDB. The liquidators welcome the dismissal of the bank's appeal as a positive step forward for their recovery efforts which are ultimately for the benefit of the people of Malaysia."

A long-running dispute
The Singapore High Court dismissed Standard Chartered's initial application to strike out the suit in November 2025, prompting the bank to appeal that decision – the appeal that has now itself been dismissed. 

The case sits within the broader, decade-long effort to recover funds from the 1MDB scandal, which US investigators have said involved the misappropriation of more than $4.5 billion between 2009 and 2015. The saga became one of the largest financial fraud cases in history, drawing in a former Malaysian prime minister and a number of high-profile international banks.