New York (AFP)

A subsidiary of Goldman Sachs pleaded guilty Thursday to its controversial role in the vast corruption scandal of the sovereign wealth fund 1MDB, a first in the history of the prestigious firm, which will also pay nearly $ 3 billion to close US investigations .

The institution's Malaysian division admitted guilt before a New York judge for violating the U.S. Foreign Corrupt Practices Act (FCPA).

This is the first time that a division linked to Goldman Sachs, whose role in the 2008 financial crisis has earned it criticism and abuse, has admitted wrongdoing in an investigation by the authorities since its IPO in May 1999.

Billions of dollars had been embezzled from 1MDB, a sovereign wealth fund supposed to contribute to Malaysia's economic development, to buy, among other things, real estate, a yacht and luxury goods.

The money, for example, was used to partially finance Martin Scorsese's film "The Wolf of Wall Street", starring Oscar-winning actor Leonardo DiCaprio.

- Bonus claimed -

Goldman Sachs is accused of having participated in the scandal by organizing bond issues totaling 6.5 billion dollars in 2012 and 2013. She had received some 600 million dollars for this role of intermediary.

Its subsidiary admitted to having, between 2009 and 2014, participated in a scheme that led to the payment of more than $ 1.6 billion in bribes to executives in Malaysia and Abu Dhabi to be retained as an advisory bank.

In addition to his reputation, the slate is heavy for the establishment in this politico-financial affair with planetary ramifications: he has agreed, for the moment, to pay nearly 6 billion dollars in total to various authorities around the world to settle the surveys.

The bank also decided to claim a total of $ 174 million in compensation, including bonuses, from executives, past and present, including CEO David Solomon and his predecessor Lloyd Blankfein.

"There is no doubt that some ex-employees broke the law," said Solomon.

If the financial penalty imposed Thursday by the American authorities is heavy, it allows Goldman Sachs, which admitted to having ignored red flags, to turn the page of this legal case and to concentrate on its activities.

- Under surveillance -

By pleading guilty, the Asian subsidiary of Goldman Sachs will see its scope of activities limited or will no longer be able to exercise some of them.

The parent company will not be sued by the American authorities but undertakes to strengthen its internal controls and procedures for three and a half years to avoid a repetition of the facts denounced.

However, this does not prevent parties who consider themselves aggrieved - investors or individuals - from suing the New York firm.

The amount paid by the bank to the United States corresponds to a fine of $ 2.3 billion and the reimbursement of just over $ 600 million in commissions collected by the financial institution.

Part of this money, $ 1.6 billion, will be used to pay fines to authorities in other countries as well as other government agencies in the United States.

Goldman Sachs has already paid Malaysia $ 2.5 billion last month as part of an out-of-court settlement that should settle the investigation in the country.

It also guaranteed that at least 1.4 billion funds embezzled from the 1MDB fund would be recovered.

The Hong Kong financial regulator announced Thursday that it had fined the investment bank 2.71 billion Hong Kong dollars ($ 350 million).

On the political side, former Malaysian Prime Minister Najib Razak, whose coalition lost the elections in 2018 largely because of the anger of voters shocked by the scandal, was sentenced to 12 years in prison in a first trial held in the summer.

He is on parole pending an appeal trial.

A former Goldman Sachs banker, Tim Leissner, has pleaded guilty in the United States for his role in this case.

And a former Malaysian bank manager, Ng Chong Hwa, is also being sued in the United States.

© 2020 AFP