Standard Chartered Plc and BSI Bank Ltd. suffered a legal setback in Singapore after the High Court rejected their attempts to join winding-up proceedings tied to the 1Malaysia Development Bhd. scandal. The ruling bars both financial institutions from participating in applications that could affect assets connected to the Malaysian sovereign wealth fund case.

The 1MDB controversy, which has spanned multiple jurisdictions, involves billions of dollars allegedly misappropriated from the state fund. Singapore has played a key role in the investigation, with authorities seizing assets and pursuing legal action against banks accused of facilitating suspicious transactions. The court's decision limits StanChart and BSI's ability to influence proceedings that could impact their exposure to the case.

For Standard Chartered and BSI, the ruling represents another chapter in the long-running fallout from 1MDB. Both banks have previously faced scrutiny over their handling of transactions linked to the fund. The decision underscores Singapore's continued aggressive stance on financial crime and its willingness to limit the involvement of institutions with connections to the scandal.