Goldman Sachs Under Investigation by U.S. Officials

Goldman Sachs (GS) - Get Report is being investigated by U.S. law enforcement officials for not alerting authorities about a suspicious transaction involving a Malaysian investment fund, according to reports. Goldman Sachs made a $3 billion bond issue for one Malaysia Development bank, known as 1MDB, in 2013. The purpose of the transaction was to fund real estate development in Malaysia. But, soon after the funds were transferred into a Swiss bank account, nearly half of the funds were diverted to an offshore account and some of the funds were transferred to the Malaysian prime minister's account. Goldman Sachs has not been accused of ANY wrong-doing, but by not alerting authorities, it may have failed to comply with the U.S. Bank Secrecy Act.

This article was written by a staff member of TheStreet.