Powerhouse investment bank Goldman Sachs on Thursday agreed to pay nearly $3 billion to settle a probe into its role in Malaysia's one MDB corruption scandal, ending a long running saga that has dogged the bank for years.

The Banks Malaysia unit also pleaded guilty to conspiring to violate foreign bribery laws, said Brian Rabbit, acting head of the U.

S Justice Department's criminal division.

These charges stem from Goldman Sachs is central role in a massive global scheme toe loot billions of dollars from the government run Malaysian Investment Fund, known as one MDB, and the subsequent use of those fund by senior Goldman bankers and their co conspirators to pay billions of dollars in bribes two senior government officials around the world.

The scandal dates to the government of former Malaysian Prime Minister Najib Razak, which set up the one MDB fund in 2000 and nine.

The Justice Department estimated $4.5 billion was misappropriated by high level fund officials and their associates.

Billions of dollars were later stolen from one MDB, some of which was then used to bribe corrupt officials in Malaysia and Abu Dhabi as well as others.

Thes criminal proceeds were laundered through the United States and other financial institutions and used to make extravagant purchases around the world, including high end real estate yachts, art and other luxury goods.

In November 2018 the Justice Department filed criminal charges against two former Goldman Sachs bankers tied to the scandal.

Goldman CEO David Solomon, in a staff memo Thursday, said Quote, We recognize that we did not adequately address red flags and scrutinize the representation of certain members of the deal.

Team prosecutors say the more than $2.9 billion settlement deal was the largest penalty ever paid by a U.

S company in a criminal foreign bribery case Criminal.