JPMorgan Chase will pay the Malaysian government $330m to settle claims over its role in the multibillion-dollar scandal at state fund 1MDB, both parties announced.

The agreement comes as Swiss prosecutors separately found the US bank’s Swiss arm guilty of failing to prevent money laundering linked to the fund, imposing a fine of 3m francs ($3.7m).

Between 2009 and 2014, at least $4.5bn was siphoned from 1MDB through a network of shell companies and financial institutions, according to investigators in Malaysia and the United States. The scandal toppled Malaysia’s leadership and led to the 2022 jailing of former prime minister Najib Razak, who denies wrongdoing.

In 2021, 1MDB sued JPMorgan’s Swiss unit alongside Deutsche Bank and Coutts & Co, accusing them of negligence, breach of contract, and conspiracy. Court filings showed Malaysia had sought $800m from JPMorgan alone.

Friday’s joint statement said the $330m settlement, made without any admission of liability, would be placed in Malaysia’s 1MDB Assets Recovery Trust Account. Both sides agreed to withdraw pending appeals and end future litigation related to the case.

The Swiss Attorney General’s Office said JPMorgan’s Swiss unit failed to implement safeguards against aggravated money laundering in transactions involving two oil executives convicted of embezzling more than $1.8bn from 1MDB.

JPMorgan said it was “pleased to have resolved matters,” adding that it had strengthened compliance controls.

Malaysia’s finance ministry recently told parliament that 29.7 billion ringgit ($7bn) linked to 1MDB and its former subsidiary SRC International had been recovered so far.