KUALA LUMPUR, Aug. 22 -- The federal government has secured RM1.4 billion from investment bank JPMorganChase as part of a settlement linked to the 1MDB scandal.

The funds will be channelled into Malaysia's Assets Recovery Trust Account, which manages monies recovered from the multibillion-dollar scandal.

In a joint statement, 1MDB and JPMorganChase said the agreement resolves all existing and potential claims between the two parties.

"The Malaysian Government and JPMorganChase are pleased to announce that they have resolved all matters relating to 1MDB," the statement said.

As part of the deal, both sides will withdraw pending appeals in the Kuala Lumpur High Court, including a lawsuit by 1MDB against JP Morgan (Switzerland) Ltd.

The...