Andrea Vella had been placed on leave amid a crackdown over 1MDB, for which Goldman Sachs helped raise US$6.5 billion.

The US Department of Justice has said more than US$4.5 billion was stolen from 1MDB by high-level officials at the fund and their associates between 2009 and 2015.

Vella “engaged in unsafe and unsound practices” by failing to take action over the involvement of Low Taek Jho in bond offerings in 2012 and 2013, the Fed said in an administrative order.

Low, or Jho Low, the alleged mastermind and an intermediary to the 1MDB fund, “was a person of known concern to Goldman, and his involvement indicated heightened potential underwriting risks,” the Fed said in a news release.

The Fed’s action comes on the heels of earlier moves to permanently bar two former Goldman bankers, Tim Leissner and Roger Ng, from the industry.

Goldman Sachs last month set aside US$1.1 billion in legal costs, with most of the funds expected to go to 1MDB settlements.