Much of the $6bn raised by the now-defunct sovereign fund during its years in operation has gone missing.
Prosecutors are looking into the role of Tan Boon-Kee, a colleague of a former Goldman Sachs executive, Tim Leissner, who worked with him on 1MDB-related business, the the WSJ said.
She left Goldman to become Asia-Pacific head of banking for financial institutions at Deutsche, where she had further 1MDB dealings, it added.
In a statement, Deutsche Bank said it had fully cooperated with all regulatory and law enforcement agencies that made inquiries.
“As stated in asset forfeiture complaints filed by the US department of justice, 1MDB made ‘material misrepresentations and omissions to Deutsche Bank officials’ in connection with 1MDB’s transactions with the bank,” the bank told Reuters. “This is consistent with the bank’s own findings in this matter.”
A justice department civil asset-forfeiture complaint repeatedly describes Deutsche Bank as being misled by 1MDB officers, the WSJ said.
Tan left Deutsche last year after it discovered communications between her and Jho Low, the Malaysian financier that the US justice department has described as the central player in the 1MDB scandal, it added.