Malaysia is considering pursuing legal action against Goldman Sachs in connection with its involvement in the massive corruption scandal surrounding the state fund 1Malaysia Development Berhad (1MDB), Malaysian Prime Minister Anwar bin Ibrahim revealed in a recent interview with CNBC.

The 1MDB scandal saw billions of dollars misappropriated, which led to the implication of senior officials in Malaysia and other countries.

Goldman Sachs agreed to a $2.5 billion settlement with Malaysia in 2020 while also guaranteeing to return $1.4 billion in assets to Kuala Lumpur in exchange for dropping all criminal charges against the bank.

Much of the money raised was allegedly embezzled. The US Justice Department says that some $2.7 billion of the $6.5 billion the Goldman Sachs Group helped raise for 1MDB were stolen by people connected to former Prime Minister Najib Razak and diverted for bribes, a luxury yacht, fine art, and even funding for the Martin Scorsese film "The Wolf of Wall Street."

A lower court in July 2020 found Najib guilty of abuse of power, money laundering, and criminal breach of trust over the transfer of $10.1m (42 million Malaysian ringgit) from SRC International, a former unit of 1MDB, to his personal bank account.

This settlement resulted in the dropping of all criminal charges against the bank. However, Anwar, who assumed office in late 2022, expressed concerns earlier this year about the adequacy of the settlement amount.

"I am not ruling out the possibility of reinitiating legal action," he told CNBC as Malaysia evaluates its options.

Goldman Sachs has consistently denied any wrongdoing in relation to the 1MDB case. The scandal revolves around the embezzlement of around $4.5 billion from 1MDB between 2009 and 2014. The activities involved a complex web of individuals, including high-ranking officials in both government and banking sectors.

Goldman Sachs played a pivotal role in the scandal by assisting 1MDB in raising $6.5 billion through two bond offerings. In return, the bank earned substantial fees amounting to $600 million, the US Justice Department said.

Goldman Sachs agreed in 2020 to make a one-time interim payment of $250 million if the Malaysian government had not received a minimum of $500 million in assets and proceeds by August 2022.

A regulatory filing from the bank earlier in the year indicated disagreements between the two parties regarding whether Malaysia had successfully recovered the stipulated amount by the specified date.

If a resolution couldn't be reached, the dispute would be resolved through arbitration, the bank explained.