The US Justice Department is investigating whether Deutsche Bank AG violated foreign corruption or anti-money-laundering laws in its work for state fund 1Malaysia Development Berhad (1MDB), the Wall Street Journal said on Wednesday.
The news comes after the bank announced plans to scrap its global equities unit, cut some fixed-income operations and slash 18,000 jobs globally in a $8.34-billion restructuring program.
Deutsche Bank’s work for 1MDB included helping to raise $1.2 billion in 2014 as concerns about the fund’s management and financials had begun to circulate, the newspaper said, citing unidentified people familiar with the matter.
Prosecutors are mainly looking into the role of Tan Boon-Kee, a colleague of a former Goldman Sachs Group Inc. executive, Tim Leissner, who worked with him on 1MDB-related business, the paper said.
She left Goldman to become Asia-Pacific head of banking for financial institutions clients at Deutsche Bank, where she was involved with further 1MDB dealings, it added.
In an emailed statement, Deutsche Bank said it had fully cooperated with all regulatory and law enforcement agencies that made inquiries about the fund.
“As stated in asset forfeiture complaints filed by the US Department of Justice, 1MDB made ‘material misrepresentations and omissions to Deutsche Bank officials’ in connection with 1MDB’s transactions with the bank,” the bank told Reuters.
“This is consistent with the bank’s own findings in this matter,” it added.
A US DoJ civil asset-forfeiture complaint repeatedly describes Deutsche Bank as being misled by 1MDB officers, the WSJ said.
Tan left Deutsche Bank last year, after it discovered communications between her and Jho Low, the Malaysian financier the Justice Department has described as the central player in the 1MDB scandal, it added.
A spokeswoman for insurance company FWD Group, Tan’s current employer, said Tan declined to comment when contacted by the WSJ.
The DoJ and FWD did not immediately respond to a request for comment from Reuters.
US probes Deutsche Bank’s dealings with Malaysia’s 1MDB: WSJ
US probes Deutsche Bank’s dealings with Malaysia’s 1MDB: WSJ
- Prosecutors are focused on investigating the role of Tan Boon-Kee in 1MDB and Deutsche Bank dealings
- Deutsche Bank said they have cooperated with law enforcement and regulatory agencies regarding the investigation
Aramco, Microsoft sign pact to accelerate industrial AI rollout
RIYADH: Saudi Aramco signed a memorandum of understanding with Microsoft to explore industrial artificial intelligence initiatives aimed at improving operational efficiency, strengthening digital sovereignty, and expanding the Kingdom’s technical workforce.
The non-binding agreement builds on a long-standing partnership between the state energy giant and the US technology firm, focusing on deploying AI-driven industrial solutions built on Microsoft Azure and embedding them into core operations.
The companies will examine ways to co-develop and commercialize industrial AI systems for the energy sector, including the potential creation of a global marketplace for Saudi-developed technologies, according to a joint press release.
Ahmad O. Al Khowaiter, Aramco executive vice president of Technology & Innovation, said: “Aramco is driving the energy sector’s digital transformation by creating a secure, intelligent, and collaborative digital ecosystem.”
He added: “In partnership with Microsoft, we seek to further scale cutting-edge digital and AI solutions in that sector to achieve efficiency and innovation — without compromising the highest standards of security and governance.”
A key component of the agreement is digital sovereignty. The companies will explore a roadmap for deploying Microsoft cloud solutions with enhanced sovereign controls to meet national data residency requirements, an area of increasing focus for Gulf governments seeking greater control over strategic data infrastructure.
The pact also includes plans to streamline Aramco’s global digital architecture and engage Saudi technology integrators to expand AI adoption across the industrial value chain.
Beyond infrastructure, the collaboration emphasizes workforce development. The companies are exploring targeted programs to expand skills in AI engineering, cybersecurity, data governance, and product management, building on Microsoft’s existing training initiatives in the Kingdom.
“This marks the next step in our long-standing collaboration with Aramco, exploring how industrial AI can move from pilots into core operations to improve efficiency and resilience at scale,” said Brad Smith, Microsoft vice chair and president.
He added: “Our focus is on building strong foundations — sovereign-ready digital infrastructure, trusted governance, and the skills needed for responsible industrial AI adoption.”
As a global industry leader, he said, Aramco has the opportunity to set a reference for large-scale, responsible industrial AI transformation aligned with Saudi Arabia’s Vision 2030.
