The Goldman Sachs Group, Inc. · bribery · banking · criminal prosecution · deferred prosecution agreement · plea agreement · arbitration
What did Goldman Sachs admit over 1MDB, and is its Malaysia settlement still disputed?
On 22 October 2020 The Goldman Sachs Group, Inc. entered a deferred prosecution agreement over a US charge of conspiracy to violate the Foreign Corrupt Practices Act and its Malaysian subsidiary pleaded guilty, as part of a resolution of over 2.9 billion dollars. The charge against the parent was dismissed on 6 May 2024 under the agreement. Goldman's 2020 settlement with Malaysia, reported as worth 3.9 billion dollars, remains disputed. Goldman's August 2026 quarterly filing says the arbitration it began against Malaysia in October 2023 is ongoing, that Malaysia demanded a final payment of about 1 billion dollars in August 2025, and that Goldman believes no payment is required.
Last verified 30 October 2026. United States · Malaysia
The record at a glance
| What was alleged? | The US Department of Justice alleged that Goldman, through its agents and employees including former employees Tim Leissner and Roger Ng, conspired with others to pay more than 1.6 billion dollars in bribes to Malaysian and Abu Dhabi officials to obtain 1MDB bond business, using more than 2.7 billion dollars diverted from bond offerings Goldman underwrote.1 |
|---|---|
| Who made the claim? | US Department of Justice, 22 October 2020 |
| How did Goldman Sachs respond? | Goldman accepted the US resolution and its Malaysian subsidiary pleaded guilty. Its chief executive told staff the firm did not adequately address red flags. Goldman has also said that 1MDB and former Malaysian government officials lied to it about the use of bond proceeds, according to Reuters. In the arbitration, Goldman's position is that Malaysia has recovered more than 1.4 billion dollars in creditable assets and that no further payment should be required.2,3,4 (the subject's position) |
| Was there an official finding? | Goldman Sachs (Malaysia) Sdn. Bhd. pleaded guilty in the US to conspiracy to violate the FCPA and was sentenced on 9 June 2021, and the parent admitted facts in a deferred prosecution agreement.1,4 The US charge against the parent was dismissed on 6 May 2024 in accordance with the agreement.3,4 Malaysian criminal charges against three Goldman entities were withdrawn in September 2020 after the settlement, with a discharge amounting to acquittal.5 |
| Was liability determined? | Admitted by the subject. The Malaysian subsidiary was convicted on its guilty plea and sentenced. The parent admitted facts under a deferred prosecution agreement but was not convicted, and its charge was dismissed. In Malaysia the charges were withdrawn and the entities acquitted under the settlement. The dispute with Malaysia over the settlement guarantee is unresolved in confidential arbitration.1,4,5,7 |
| What changed later? | As of 30 October 2026 the US criminal case against the parent is closed by dismissal, the Malaysian subsidiary's conviction stands, and Goldman's latest quarterly filing describes the arbitration with Malaysia as ongoing.3,4,7 |
| When was this checked? | 30 October 2026 |
What was alleged?
The US Department of Justice alleged that Goldman, through its agents and employees including former employees Tim Leissner and Roger Ng, conspired with others to pay more than 1.6 billion dollars in bribes to Malaysian and Abu Dhabi officials to obtain 1MDB bond business, using more than 2.7 billion dollars diverted from bond offerings Goldman underwrote.1
Made by US Department of Justice on 22 October 2020.
What did Goldman Sachs say?
Goldman accepted the US resolution and its Malaysian subsidiary pleaded guilty. Its chief executive told staff the firm did not adequately address red flags. Goldman has also said that 1MDB and former Malaysian government officials lied to it about the use of bond proceeds, according to Reuters. In the arbitration, Goldman's position is that Malaysia has recovered more than 1.4 billion dollars in creditable assets and that no further payment should be required.2,3,4
"we did not adequately address red flags"
David Solomon, Chairman and CEO, Goldman Sachs (memo to employees, as republished from The Edge Markets), 22 October 2020. This is the subject's own account, not a finding.
What do independent records show?
Settlement agreement between Goldman Sachs and the Government of Malaysia
Government of Malaysia, 18 August 2020
According to Malay Mail, a settlement valued at 3.9 billion dollars, made up of a 2.5 billion dollar cash payment and a guarantee that Malaysia would receive at least 1.4 billion dollars in assets linked to the 1MDB bonds, resolving the criminal proceedings in Malaysia. Goldman's filings describe the agreement and the 1.4 billion dollar guarantee.4,5
Withdrawal of charges against three Goldman Sachs entities (as reported)
High Court of Malaya at Kuala Lumpur, 4 September 2020
Prosecutors withdrew all 12 charges under the Capital Markets and Services Act 2007 against Goldman Sachs International, Goldman Sachs (Asia) LLC and Goldman Sachs (Singapore) Pte, and the court granted a discharge amounting to acquittal.5
Deferred prosecution agreement (The Goldman Sachs Group, Inc.) and guilty plea (Goldman Sachs (Malaysia) Sdn. Bhd.)
US Department of Justice and US District Court for the Eastern District of New York, 22 October 2020
The parent was charged by information with conspiracy to violate the FCPA anti-bribery provisions and entered a deferred prosecution agreement. The Malaysian subsidiary pleaded guilty to one count of the same conspiracy. Goldman agreed to pay over 2.9 billion dollars in a coordinated resolution, with the Department crediting over 1.6 billion dollars paid to foreign authorities. Goldman admitted its control functions did not take reasonable steps to ensure Jho Low was not involved.1
Arbitration claim by Goldman Sachs against the Government of Malaysia (as reported)
London Court of International Arbitration, 11 October 2023
Goldman began arbitration over Malaysia's approach to recovering and crediting assets under the guarantee in the 18 August 2020 settlement agreement. Al Jazeera described the initial dispute as concerning a 250 million dollar interim payment tied to whether Malaysia had recovered at least 500 million dollars in assets by August 2022. Malaysia's finance ministry named the forum as the London Court of International Arbitration and gave the filing date.4,6,7
Dismissal of the charge against The Goldman Sachs Group, Inc.
US District Court for the Eastern District of New York (Chief Judge Margo Brodie), 6 May 2024
The charge was dismissed after the three year deferred prosecution agreement, which expired in October 2023. Goldman's 10-Q says the dismissal was in accordance with the agreement. Reuters reported that Chief Judge Margo Brodie dismissed it and that Goldman did not oppose dismissal.3,4
Statement on 1MDB recoveries (as reported by The Edge Malaysia)
Ministry of Finance, Malaysia, 14 October 2025
The ministry said the arbitration with Goldman was ongoing, handled by the Attorney General's Chambers with UK King's Counsel, and that because of confidentiality terms no further details could be disclosed.7
Quarterly report for the period ended 30 June 2026, guarantees and legal proceedings notes
The Goldman Sachs Group, Inc. (Form 10-Q filed with the SEC), 3 August 2026
Goldman states that the guarantee required Malaysia to receive at least 1.4 billion dollars by August 2025, that the arbitration is ongoing, that Malaysia demanded a final payment of about 1 billion dollars in August 2025, that Goldman believes Malaysia has recovered more than 1.4 billion dollars in creditable assets and that no payment should be required, and that final determinations will be made through the arbitral process. It also states that the parent's charge was dismissed on 6 May 2024 and that GS Malaysia was sentenced on 9 June 2021.4
What was established?
- Goldman Sachs (Malaysia) Sdn. Bhd. pleaded guilty in the US to conspiracy to violate the FCPA and was sentenced on 9 June 2021, and the parent admitted facts in a deferred prosecution agreement.1,4
- The US charge against the parent was dismissed on 6 May 2024 in accordance with the agreement.3,4
- Malaysian criminal charges against three Goldman entities were withdrawn in September 2020 after the settlement, with a discharge amounting to acquittal.5
Distinctions that matter here
- The parent company was not convicted. Its deferred prosecution agreement ended with dismissal. Only the Malaysian subsidiary was convicted.
- The Malaysian court acquittal followed the prosecution's withdrawal under the settlement, not a trial on the merits.
Was liability determined?
Admitted by the subject. The Malaysian subsidiary was convicted on its guilty plea and sentenced. The parent admitted facts under a deferred prosecution agreement but was not convicted, and its charge was dismissed. In Malaysia the charges were withdrawn and the entities acquitted under the settlement. The dispute with Malaysia over the settlement guarantee is unresolved in confidential arbitration.1,4,5,7
What remains unresolved?
- The outcome of the arbitration between Goldman and Malaysia over the settlement guarantee, including Malaysia's August 2025 demand for about 1 billion dollars.
- A US shareholder class action over 1MDB disclosures is being settled, with the plaintiffs moving for preliminary approval of a settlement on 20 May 2026 according to Goldman. Court approval was not checked.
- The parties' pleadings in the arbitration are confidential.
What is the current status?
As of 30 October 2026 the US criminal case against the parent is closed by dismissal, the Malaysian subsidiary's conviction stands, and Goldman's latest quarterly filing describes the arbitration with Malaysia as ongoing.3,4,7
As of 30 October 2026. No next proceeding is scheduled in the records we found.
Timeline
- Goldman and Malaysia reportedly agree in principle on a 3.9 billion dollar settlement.5
- Settlement agreement signed.4,7
- Malaysian charges withdrawn and entities acquitted.5
- US deferred prosecution agreement and subsidiary guilty plea.1
- GS Malaysia sentenced, according to Goldman.4
- Goldman files arbitration claim against Malaysia.4,7
- US charge against the parent dismissed.3,4
- Malaysia's finance ministry says the arbitration is ongoing.7
- Shareholder class action plaintiffs move for preliminary approval of a settlement, according to Goldman.4
- Goldman's 10-Q describes the arbitration as ongoing and Malaysia's August 2025 demand for about 1 billion dollars.4
Sources
- US Department of Justice, Office of Public Affairs, Goldman Sachs Charged in Foreign Bribery Case and Agrees to Pay Over $2.9 Billion, 22 October 2020 · document record Government, parliamentary or audit document
- KLSE Screener (republication of Goldman Sachs statements from The Edge Markets), 1MDB Update: Goldman Sachs' statements relating to 1MDB government and regulatory settlements, 22 October 2020 Independent reporting
- The Star (Reuters), Goldman Sachs criminal case over 1MDB formally ends in New York (Reuters), 7 May 2024 Independent reporting
- The Goldman Sachs Group, Inc. (SEC filing), The Goldman Sachs Group, Inc. Form 10-Q for the quarter ended June 30, 2026, 3 August 2026 · document record Filing or formal statement by the subject
- Malay Mail, Malaysia drops criminal cases against three Goldman Sachs entities over 1MDB, 4 September 2020 Independent reporting
- Al Jazeera, Why is Goldman Sachs suing Malaysia over 1MDB scandal?, 12 October 2023 Independent reporting
- The Edge Malaysia, Malaysia recovers over RM20.7b from financial institutions over 1MDB scandal, MOF, 14 October 2025 Independent reporting
Revision history
- 30 October 2026: First published after source verification.
Related: The Goldman Sachs Group, Inc., bribery, banking, criminal prosecution, deferred prosecution agreement, plea agreement, arbitration, United States, Malaysia. To submit a document or request a correction, see right of reply.