SINGAPORE - Malaysia's securities commission said on Thursday that it has issued a show-cause letter to Goldman Sachs, which is embroiled in multi-jurisdictional investigations into Malaysian state fund 1Malaysia Development Berhad .
A show-cause letter typically requires the recipient to explain why they should not be subject to disciplinary action. "We have issued a show cause to Goldman Sachs," the chairman of the Malaysia Securities Commission, Mr Syed Zaid Albar, said at a press conference on Thursday.If the commission finds a financial institution violated regulations, its powers include issuing fines or revoking operating licences.
Goldman Sachs has consistently denied wrongdoing and said certain members of the former Malaysian government and 1MDB had lied to the bank about the use of the proceeds from the bond sales.