The suit, filed on May 2, seeks redress for large-scale financial losses allegedly suffered as a result of unauthorised fund transfers and money laundering schemes orchestrated through accounts held at the bank.

A spokesperson for 1MDB’s board of directors said the company was “pleased” with the court’s decision.

“We are committed to holding accountable the institutions and individuals involved in misappropriating money from Malaysia’s sovereign wealth fund, while ensuring the recovery and restitution of these assets back to the Malaysian people,” the spokesperson was quoted as saying in a statement released on 1MDB’s behalf.

In the suit, 1MDB and Brazen Sky allege that BSI and several of its former officers assisted in the misappropriation of 1MDB’s assets by facilitating unauthorised fund transfers.

The lawsuit forms part of 1MDB’s ongoing global asset recovery efforts to reclaim billions of dollars in misappropriated funds.

The dismissal of the striking out application, which is subject to an appeal, allows the case against BSI to proceed to trial.

BSI was placed into members’ voluntary liquidation in 2017, with Bob Yap and Toh Ai Ling of KPMG Singapore appointed joint and several liquidators.

The Singapore-based bank is a wholly-owned subsidiary of BSI AG of Switzerland, which was previously owned by Brazil’s BTG Pactual, known as Latin America’s equivalent to Goldman Sachs.

1MDB was represented in the proceedings by Ng Jern-Fei, Colin Liew and Tan Jun Hong of Duxton Hill Chambers (Singapore Group Practice) and a team from LVM Law Chambers.

The appointed liquidators for Brazen Sky are Angela Barkhouse and Toni Shukla, both of Kroll.