KUALA LUMPUR (May 7): Malaysian authorities are seeking to extradite former Goldman Sachs executive Tim Leissner, who was involved in the 1MDB scandal, from the US, the Wall Street Journal (WSJ) reported.

The Malaysian government submitted the extradition request to the US Department of Justice in August last year, WSJ reported, quoting sources and documents.

An Interpol Red Notice was issued against Leissner in November, which alleged that the former banker breached Malaysia’s capital markets regulations and could face up to 10 years’ jail if found guilty, the report said.

The Edge has reached out to the Ministry of Home Affairs for comments.

Leissner is currently awaiting sentencing in the US, after he pleaded guilty in 2018 for conspiring to launder money and bribe foreign officials in relation with 1Malaysia Development Bhd (1MDB).

He admitted to receiving around US$60 million in kickbacks, as 1MDB roped in Goldman Sachs for US$6.5 billion bond issuance, from which Goldman Sachs received US$600 million in fees.

Leissner’s next US hearing is scheduled for May 29.

According to the WSJ report, Malaysia is racing for Leissner’s extradition before he could potentially return to the colder US towns.

Another Goldman Sachs banker, Roger Ng, was extradited to Malaysia soon after he was found guilty in the US for money laundering, which landed him a 10-year jail term.

Goldman Sachs and Malaysia are in dispute over their 2020 settlement. The bank agreed to pay US$2.5 billion to the Malaysian government, with a guarantee to recover US$1.4 billion in assets. That agreement is under review, following a re-evaluation initiated by Prime Minister Datuk Seri Anwar Ibrahim in April 2023.