Goldman Sachs Group has reached a long-awaited pact with the US Department of Justice to pay more than US$2 billion (S$2.7 billion) for the bank's role in Malaysia's 1MDB scandal, and the deal may be announced within days, according to sources.
The accord, part of an international action, will let the parent company avoid a US criminal conviction, according to the sources, who asked not to be named discussing the confidential talks.
The payment to the Justice Department is broadly in line with the bank's prior reserves and analysts' estimates.
The deal, expected to come just weeks before the US presidential election, would remove uncertainty for the bank following years of investigations and negotiations with the Justice Department over the firm's fund raising for the 1MDB investment fund.
It follows an agreement in July to settle a related probe with Malaysia, in which the bank promised to pay US$2.5 billion.
Malaysia dropped criminal charges against the New York-based company early the previous month.
A representative for Goldman Sachs declined to comment, and representatives for the Justice Department did not respond to messages seeking comment.
In all, Goldman Sachs may pay roughly US$5 billion once accords with Malaysia, the Justice Department and other agencies are tallied together.
In Singapore, the authorities plan to levy a financial penalty and issue a warning with conditions, and if the company breaches them, Goldman Singapore could be prosecuted, sources said. The Monetary Authority of Singapore, Attorney-General's Chambers and police did not immediately reply to an e-mail seeking comment.
Probes of the Wall Street firm focused on its work raising US$6.5 billion in 2012 and 2013 for the fund formally known as 1Malaysia Development Berhad, much of which was afterwards allegedly siphoned off by people connected to the country's previous prime minister Najib Razak.
Goldman's investment banking group, led at the time by current chief executive David Solomon, collected US$600 million from the bond sales.
The authorities in Asia, the US and Europe have spent years tracing out the conspiracy and tracking down cash and assets around the globe, including luxury properties, jewellery and art.
Goldman has long blamed rogue employees, asserting it had no idea the money it helped raise would be diverted from development projects. Previous Goldman Sachs partner Tim Leissner pleaded guilty in the US to conspiring to launder money and violating foreign bribery laws. Another executive was charged with foreign bribery offences.
BLOOMBERG