KUALA LUMPUR: Bank Negara has completed all necessary investigations into 1Malaysia Development Bhd (1MDB) and closed the case, said Governor Datuk Muhammad Ibrahim.
"We have completed all investigations, imposed a penalty on the company and taken all necessary action and closed the case," the central banker told reporters here today, after announcing Malaysia's economic performance of the second quarter of this year.
Four months ago, Bank Negara issued a compound to 1MDB for its failure to fully comply with directions it had issued under the Financial Services Act 2013.
These included requirements for 1MDB to repatriate monies remitted abroad following the revocations of the three permissions granted by Bank Negara to 1MDB in 2009, 2010 and 2011 and failure to provide evidence to justify its inability to fully comply with the repatriation order.
In May 2016, 1MDB said it had fully paid the undisclosed sum of penalty to Bank Negara.
Following receipt of compound, Bank Negara announced the conclusion of the investigation.
Last month, the United States’ Department of Justice filed a civil complaint against several individuals to seize over US$1 billion worth of assets, which it said were the result of US$3.5 billion misappropriated from 1MDB.
In response, Muhammad reiterated that Bank Negara does not have any plans to reopen investigations on 1MDB despite the civil complaint filed by the US Department of Justice.
He went on to say that if the US Department of Justice were to approach Bank Negara for assistance in its investigations, the central bank will abide by these protocols in the event of any international collaboration.
"We're governed by protocols and arrangements that are already in place."
Recently, the Monetary Authority of Singapore ordered the shutdown of the BSI Bank for gross misconduct. The Singapore central bank then announced plans to create departments dedicated to fighting money laundering and to strengthen regulatory enforcement.
To a question if Bank Negara would follow suit its counterpart in Singapore, Muhammad replied his team already has a financial intelligence unit to look into all these issues.