Hong Kong’s markets watchdog has fined Goldman Sachs (Asia) L.L.C. $350 million for its role in Malaysia’s 1MDB scandal.

The Securities and Futures Commission said the Goldman Sachs GS.N unit had made serious lapses and there were deficiencies in its management controls that contributed to the misappropriation of $2.6 billion from funds raised by 1Malaysia Development Berhad (1MDB) in three bond offerings in 2012 and 2013.