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When a deal pays an intermediary far above market rates, the premium does more than pay for risk. It pays the intermediary to stop asking where the money is going. Goldman's roughly 10% margins on the 1MDB bonds rewarded bankers who pushed the deals through compliance despite red flags such as Low's unexplained involvement. The warning signs were ignored because the fees made them costly to see.
Low made himself look credible by being seen next to trusted people and famous brands: celebrities at his parties, Hollywood film credits, charity galas, and photos with heads of state. Each visible association made the next one easier to get. The result was a reputation strong enough that banks, stars and officials rarely asked where his money came from. Spending conspicuously was part of how the fraud worked, not just what it paid for.
Low's network sent 1MDB money to offshore companies named to resemble real counterparties. The main example was a British Virgin Islands company called Aabar Investments Ltd., which mimicked Aabar Investments PJS, the real Abu Dhabi subsidiary, so transfers could pass as payments to a legitimate partner. The money then moved through further intermediaries and accounts at smaller banks in Switzerland and Singapore, which made its origin harder to trace.