Finance
Standard Chartered, Bsi Lose Bid to Join Cases in Singapore Winding up Firms With Assets Linked to 1MDB
Published by Global Banking & Finance Review®
Posted on March 20, 2026
2 min readLast updated: March 20, 2026
Quick Summary
Singapore’s High Court ruled that Standard Chartered Bank (Singapore), BSI Bank, and former BSI banker Hans Peter Brunner lack standing in winding‑up applications by BVI companies tied to 1MDB, as the disputed transactions pre‑date Singapore’s cross‑border insolvency law.
Singapore Court Blocks Standard Chartered & BSI From Joining 1MDB Asset Cases
High Court Decision on 1MDB Asset Recovery Proceedings
SINGAPORE, March 20 (Reuters) - Singapore's High Court ruled against a bid by Standard Chartered and BSI Bank to be heard in applications seeking to wind up some foreign entities as part of efforts to recover assets linked to Malaysia's scandal-hit sovereign wealth fund 1MDB, according to a judgment issued on Thursday.
Details of the Court Ruling
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Standing of the Banks and Individuals
Judge Aidan Xu held that Standard Chartered Bank (Singapore), BSI Bank and former BSI banker Hans Peter Brunner did not have standing to take part in four applications brought by British Virgin Islands companies in liquidation, including Brazen Sky and Blackstone Asia Real Estate Partners.
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Purpose of the Winding-Up Applications
The companies are seeking winding-up orders in Singapore so their liquidators can pursue claims to unwind transactions that took place before Singapore adopted its current cross-border insolvency rules.
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Reasoning Behind the Decision
Xu said the banks were not contingent creditors merely because they might later obtain costs orders, and a narrow exception for non-creditor participation did not apply.
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Previous Related Court Decisions
Last October, Xu dismissed a bid by foreign liquidators to sue Standard Chartered Bank and BSI Bank in Singapore over transactions allegedly linked to 1MDB.
Background on the 1MDB Scandal
Scale and Impact of the Fraud
U.S. and Malaysian investigators say about $4.5 billion was stolen from the 1Malaysia Development Bhd state fund between 2009 and 2014 in a complex, globe-spanning scheme that resulted in the jailing of former prime minister Najib Razak.
Responses from Involved Parties
Statements from Banks and Liquidators
Standard Chartered, the liquidators and BSI did not immediately respond to requests for comment on Friday.
(Reporting by Yantoultra Ngui and Xinghui Kok)
Key Takeaways
- •The October 2025 decision prevents foreign liquidators from using Singapore’s Model Law to unwind pre‑2018 transactions, per Article 23(9) of the Insolvency, Restructuring and Dissolution Act 2018, as affirmed by Judge Aidan Xu. (businesstimes.com.sg)
- •The liquidators represent BVI companies including Brazen Sky and Blackstone Asia Real Estate Partners, seeking winding‑up orders in Singapore to access statutory claims in lieu of cross‑border mechanisms. (businesstimes.com.sg)
- •This builds on prior refusals, including a separate failed attempt last October to sue the banks directly in Singapore, and follows broader efforts to recover assets from the $4.5 billion 1MDB scandal. (malaymail.com)
References
- 1MDB liquidators lose Singapore court bid to sue StanChart, BSI due to transactions predating insolvency law - The Business Times
- Liquidators lose appeal to sue StanChart, BSI over dodgy 1MDB deals - The Business Times
- 1MDB liquidators seek workarounds after Singapore court dismisses fraud suit against Standard Chartered and BSI Bank | Malay Mail
Frequently Asked Questions about Standard Chartered, BSI lose bid to join cases in Singapore winding up firms with assets linked to 1MDB
1Why did Standard Chartered and BSI Bank seek to join the winding-up cases in Singapore?
They wanted to be heard in applications seeking to wind up foreign entities linked to 1MDB asset recovery efforts.
2What was the Singapore High Court's ruling regarding Standard Chartered and BSI Bank?
The court ruled against their bid, stating they did not have standing to be heard in the applications.
3Which entities are being wound up in connection with the 1MDB case?
Foreign entities including British Virgin Islands firms such as Brazen Sky and Blackstone Asia Real Estate Partners.
4What reason did the judge give for rejecting the banks' involvement?
The judge held the banks were not contingent creditors and did not meet the exception for non-creditor participation.
5What is the background of the 1MDB asset recovery efforts?
Investigators say $4.5 billion was stolen from 1MDB, leading to international claims and legal action to recover assets.
