KUALA LUMPUR, June 2 -- A Singapore court has allowed 1MDB and its subsidiary Brazen Sky Limited to proceed with a US$394 million (RM1.68 billion) claim against BSI Bank over alleged misconduct in the global corruption scandal.

According to a statement from plaintiff's representative, the High Court dismissed BSI Bank's attempt to strike out the lawsuit, reinforcing efforts to hold financial institutions accountable for their role in the scandal.

1MDB is accusing BSI and its former officers of facilitating the illegal transfer and laundering of public funds.

The rejected appeal strengthens Malaysia's campaign to recover billions lost through corruption and mismanagement.

"We are pleased this application has been denied and are committ...