b'investigation, improve its compliance measures, andcharged with money laundering and FCPA violations, submit annual reports to the DOJ regarding its compli- were accused of participating in a sweeping inter-ance program. The DOJ listed several factors thatnational scheme whereby Goldman made payments contributed to its willingness to enter into the DPA:in excess of $1.6 billion to at least 11 foreign officials, Beam did not receive voluntary disclosure creditincluding high-ranking officials in the Malaysian govern-ment, 1MDB, and two Abu Dhabi state-owned and because it failed to timely disclose the bribes andstate-controlled companies, International Petroleum only disclosed after an employee notified the U.S.Investment Company and Aabar Investments PJS. and Indian governments of the illegal payments;Pursuant to the DPA, Goldman admitted that several of these transactions, including its role in underwriting Beam received partial credit for cooperation, but failed to receive full credit because of its inconsis- $6.5 billion worth of bond deals for 1MDB, involved tent and, at times, inadequate cooperation with thea Malaysian business partner, Low Taek Jho, that it DOJ;knew posed a significant risk and yet knowingly failed Beam received partial credit for remediationto take reasonable steps to ensure that he would not participant in the transactions. Goldman also admitted because it suspended its operations in India,to ignoring several red flags that were raised during implemented improved controls and mandatory1MDBs due diligence process in an effort to keep compliance training, hired compliance officers inthe transaction alive and retain the business, which India and APSA, and installed new management inamounted to approximately $606 million in fees and India, but failed to receive full credit for remedia- revenue for Goldman. tion because it took no disciplinary action against certain culpable individuals; andUnder the terms of the DPA, Goldman agreed to pay a criminal penalty of $2.3 billion for the FCPA misconduct, Beam had no prior criminal history.reflecting an aggregate of 10% off the bottom of the U.S. Sentencing Guidelines, disgorgement of $606 United States v. The Goldman Sachs Group,million, and a guilty plea by GS Malaysia. Goldman Inc., No. 20-CR-00437 (E.D.N.Y.) received partial credit for its cooperation with the DOJ, only because, according to the DOJ, Goldman signifi-On October 22, 2020, Goldman Sachs Group Inc.cantly delayed producing certain evidence. The DOJ (Goldman) and its Malaysian subsidiary, Goldmanunreasonably will credit over $1.6 billion in payments Sachs (Malaysia) Sdn. Bhd. (GS Malaysia) admittedwith respect to the criminal penalty, while the remaining to conspiring to violate the FCPA and, as a result,fees will be paid to the New York State Department agreed to pay combined penalties of over $2.9 billionof Financial Services, the SEC, United Kingdom, to criminal and civil authorities in the United States, theSingapore, and Hong Kong pursuant to similar parallel United Kingdom, Singapore, and elsewhere. In the U.S.,agreements.Goldman will pay $1 billion of their $2.9 billion fine toIn connection to this investigation, Tim Leissner, the also settle with the SEC, while simultaneously enteringformer Southeast Asia Chairman and participating into a three year DPA with the DOJ, that, in addition tomanaging director of Goldman, pleaded guilty to the fines, requires Goldman to self-report to the DOJ onconspiring to launder money and to violate the FCPA, the status of its enhanced anti-corruption complianceand Ng Chong Hwa, former managing director of program for three years. In connection with this inves- Goldman and head of investment banking for GS tigation and the DPA, GS Malaysia, in United States v.Malaysia, has been charged with conspiring to launder Goldman Sachs (Malaysia) Sdn. Bhd., 20-CR-00438,money and to violate the FCPA. Finally, the Malaysian also pleaded guilty to one-count of conspiracy tobusiness partner, Low, remains a fugitive underviolate the anti-bribery provisions of the FCPA.indictment by the DOJ on charges to commit money The majority of the allegations relate to Goldmanslaundering and violate the FCPA. alleged scheme, between 2009 and 2014, to pay over $1.6 billion in bribes to Malaysian and Abu DhabiUnited States v. Vitol Inc., No. 2020R00957 officials to procure lucrative business, such as its role as underwriter for three bond deals for a Malaysian(E.D.N.Y.)state-owned and state-controlled fund, 1MalaysiaOn December 3, 2020, the DOJ announced that it Development Bhd. (1MDB), that resulted in hundredsentered into a deferred prosecution agreement (DPA) of millions of dollars in fees for Goldman.with Vitol Inc. (Vitol), the U.S. affiliate of a group of More specifically, Goldman and GS Malaysia, throughVitol companies (the Vitol Group) which, collectively, several of its senior executives who are also beingform one of the largest oil distributors and energy 22'