Reported by Owen Walker and Arjun Neil Alim

(Excerpt show below. To read full report, go to: dc72d6163dcd)

Liquidators who are trying to recoup billions of dollars siphoned initially from Malaysia’s sovereign wealth fund are seeking more than $2.7bn from Standard Chartered, in a lawsuit filed against the UK-headquartered bank over its alleged role in the scandal.

The suit, filed in Singapore on Monday, represents the latest attempt to recover money taken from 1MDB as part of a decade-long hunt that has involved several of the world’s largest banks.

The case against StanChart relates to the billions of dollars that were laundered after being misappropriated from 1MDB. The suit argues the lender failed to conduct the anti-money laundering checks expected of it, according to people with knowledge of the claim.

Singapore’s regulator has already imposed sanctions on StanChart over anti-money laundering failings relating to the case.

The claimants allege that between 2009 and 2013, more than 100 intra-bank transfers were permitted by StanChart, which helped conceal the flow of stolen funds. They argue several red flags were ignored.

In a statement given to the Financial Times, the bank said it had not yet received the claim documents. It said it “emphatically rejects any claims” made by the 1MDB companies, adding that the liquidators had publicly stated they were “shell companies with no legitimate business”.

“Any claims by these companies are without merit and Standard Chartered will vigorously defend any lawsuit commenced by the liquidators,” the bank said. StanChart added that it had made “significant investments” in its anti-money laundering controls and standards.