Goldman Sachs Group Inc. is in talks with the U.S. government to pay a multibillion-dollar fine, admit guilt and agree to continuing oversight of its compliance procedures in order to resolve a criminal investigation into its role in a Malaysian corruption scandal.

Goldman and the Justice Department have largely agreed on a fine of just under $2 billion to settle allegations that the Wall Street firm ignored red flags while billions of dollars were looted from its client, a Malaysian government fund known as 1MDB, people familiar with the matter said.

The bank and U.S. officials have discussed a deal in which a Goldman subsidiary in Asia—not the parent company—would plead guilty to violating U.S. bribery laws, some of the people said. The discussions also involve Goldman installing an independent monitor to oversee and recommend changes to its compliance procedures, the people said.

Talks are continuing and the outlines of a deal, which could be reached early next year, may change.

The settlement wouldn’t resolve an investigation by authorities in Malaysia, which is seeking billions of dollars from Goldman. It couldn’t be determined whether other U.S. regulators would join the settlement or pursue their own.