By Anshuman Daga and Chanyaporn Chanjaroen

(Bloomberg) – Standard Chartered is facing a US$2.7 billion lawsuit from liquidators alleging it played a role in enabling the laundering of billions of dollars misappropriated from Malaysian sovereign wealth fund 1MDB.

Liquidators began legal proceedings against the UK-headquartered bank in Singapore, according to a statement released on Tuesday. Standard Chartered has yet to receive the claim documents and “emphatically rejects any claims” made by the 1MDB companies, the bank said in a reply to Bloomberg News.

The claimants allege that Standard Chartered Bank permitted more than 100 intrabank transfers between 2009 and 2013 that helped to conceal the flow of stolen funds. Such transfers led to the loss of more than $2.7 billion for the claimants, as well as S$20 million ($15.7 million) in public funds, according to the liquidators’ statement.

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The British bank added that the liquidators had publicly stated they were “shell companies with no legitimate business.” Standard Chartered had reported the transaction activities of the 1MDB companies, shut these accounts in 2013 and fully cooperated with the investigating authorities, the bank said.

The Financial Times reported the lawsuit earlier.

The 1MDB scandal was one of the biggest financial frauds in history, with stolen funds estimated to have exceeded $4 billion. Investigations led to the imprisonment of ex-Goldman Sachs Group executives and a former Malaysian prime minister. Malaysian financier Jho Low remains a fugitive.

Singapore authorities imposed a S$5.2 million fine against Standard Chartered in 2016 for anti-money laundering breaches related to the case. Other banks were also fined.

(Updates with Standard Chartered comments in second and fourth paragraphs.)

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