October 09

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Bank Negara revokes 1MDB foreign transfers, orders RM7.5 billion sent home

Bank Negara Malaysia today said that its investigations showed troubled state fund 1Malaysia Development Berhad (1MDB) had secured permissions for investments abroad based on inaccurate or incomplete disclosure of information.

In a statement, the central bank said it had revoked three permissions granted to 1MDB for investments abroad totalling US$1.83 billion (RM7.53 billion) and directed the company to repatriate the funds to Malaysia.

Bank Negara had recommended to the attorney-general (A-G) to initiate criminal prosecution against 1MDB for breaches under the Exchange Control Act 1953 (ECA) and added that the decision lay solely with the A-G.

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“On its part, the bank concluded that permissions required under the ECA for 1MDB’s investments abroad were obtained based on inaccurate or without complete disclosure of material information relevant to the bank’s assessment of 1MDB’s applications,” the statement said.Bank Negara also requested 1MDB to submit a plan detailing the repatriation of funds.

The statement comes a day after the A-G said it had reviewed the report of a central bank investigation into 1MDB and decided that fund officials had not committed any offence.

Reuters reported that 1MDB did not immediately respond to a request for comment while the A-G’s Chambers declined to comment.

Bank Negara’s statement is expected to pile more pressure on Prime Minister Datuk Seri Najib Razak, who chairs the fund’s advisory board.

1MDB is subjected to investigations by the Malaysian Anti-Corruption Commission and the police.

In July, The Wall Street Journal reported that investigators looking into 1MDB had identified a payment of nearly US$700 million into a bank account under Najib’s name.

Najib had denied taking the funds for personal gains. – October 9, 2015.

– See more at: http://www.themalaysianinsider.com/malaysia/article/bank-negara-revokes-1mdb-foreign-transfers-orders-rm7.5-billion-sent-home#sthash.czAtyeXP.dpuf