DBS Group Holdings said on Wednesday, 9 September, that a lawsuit had been filed against DBS Bank seeking damages the claimants estimate at S$1.298 billion, or roughly US$1.03 billion, in a matter linked to the 1Malaysia Development Berhad scandal. In a filing to the Singapore Exchange, Southeast Asia's largest lender said it had consulted its legal advisers and "categorically rejects and will vigorously resist the claim." The bank added that it had assessed that no provisions were required at this stage. DBS did not provide further details of the allegations.
The claimants are four companies in liquidation — Affinity Equity International Partners, Blackrock Commodities (Global), Platinum Global Luxury Services and TKIL Global Investments — together with their liquidators, Jason Aleksander Kardachi and Karnjote Singh s/o Jarmal Singh, who are also named as claimants. The liquidators confirmed to Reuters in an emailed statement that they had filed and served a damages claim of more than S$1 billion against DBS Bank, and said separately in a statement that the lawsuit had been filed in Singapore. DBS emphasised in its statement that global recovery efforts relating to 1MDB have been supported by legal counsel since 2018, and that throughout that period no claim had been brought against the bank.
FIRST 1MDB CLAIM AGAINST THE SINGAPORE LENDER
The disclosure marks the first time DBS has been named as a defendant in the recovery litigation surrounding the Malaysian state fund, from which United States investigators estimate about US$4.5 billion was misappropriated between 2009 and 2014 through a scheme spanning multiple jurisdictions. Recovery actions have previously targeted a range of financial institutions and service providers, and Malaysian authorities have recouped billions of ringgit through settlements with banks including Goldman Sachs, AmBank Group and JPMorgan.
DBS shares closed 0.8 per cent lower at S$77.50 on 9 September.
STANDARD CHARTERED PRECEDENT SHAPES OUTLOOK
The action against DBS follows a parallel case that has already tested how Singapore's courts handle 1MDB recovery claims against banks. Court-appointed liquidators commenced proceedings against Standard Chartered Bank in Singapore in June 2025 on behalf of Alsen Chance Holdings, Blackstone Asia Real Estate Partners and Brightstone Jewellery, alleging losses exceeding US$2.7 billion and S$20 million tied to more than 100 intrabank transfers between 2009 and 2013 that the claimants say concealed the movement of misappropriated funds. Standard Chartered emphatically rejected those claims.
That case has proved difficult to dispose of early. The High Court rejected Standard Chartered's strike-out application in November 2025, and on 30 June 2026 dismissed the bank's appeal against that decision; Standard Chartered said it would seek leave to appeal further. Malaysia's Ministry of Finance has said recoveries related to 1MDB and SRC International totalled RM31.2 billion as of 30 September 2025.