KUALA LUMPUR: An investigating officer in Datuk Seri Najib Razak's corruption case today detailed how he determined that millions of ringgit flown into the latter's bank account are a result of illegal activities.
The police Anti-Money Laundering Criminal Investigation Division assistant director ACP Foo Wei Min today explained that he was using 'First-in, first-out' (FIFO) methodology to calculate the flow of money in the former prime minister's account.
In money laundering investigations, FIFO tracks the order of funds deposited, focusing on identifying the initial, potentially illicit source of funds.
"Initially, I will determine whether the money entering Najib's account is 'illicit' or 'clean'.
"Illicit funds are identified based on transactions from Tanore Finance Corp to Najib's account while clean money is from legitimate sources unrelated to 1Malaysia Development Bhd (1MDB).
"Using the FIFO method, we can see that each withdrawal from Najib's account would deduct funds from sources unrelated to Tanore before utilising Tanore money until it's depleted.
"The 'benefit of doubt' principle has been given to the bank account holder through this method because every identified illicit transaction is presumed to be entirely illicit," he said.
It was revealed during the trial that Tanore is a shell company controlled by fugitive businessman Low Taek Jho or Jho Low.
Foo said this when testifying as the 48th prosecution witness in Najib's corruption trial for misappropriating billions of the 1MDB funds.
He said through this method (FIFO), the investigator is able to separate the US$681 million of funds that had originated from Tanore in Najib's account from other money and funds already there.
"My investigation also revealed that Najib had issued five cheques involving the use of illegal money from Tanore totaling RM22,649,000 in 2013.
"The cheques were issued to: Umno (RM20 million), Umno's Batu Kawan division (RM100,000), an individual known as Lim Soon Peng (RM246,000), ORB Solutions Sdn Bhd (RM2 million) and Semarak Konsortium Satu Sdn Bhd (RM303,000)," he said.
On Sept 20, Bank Negara Malaysia analyst Adam Ariff Mohd Roslan testified that a total of $640 million in funds belonging to 1MDB subsidiary, 1MDB Global Investment Ltd (1GIL) were remitted to Tanore and Granton Property Holding Ltd – both owned by Low's proxy Eric Tan Kim Loong or Fat Eric.
"Tanore later instructed Falcon Bank to transfer $681 million to Najib's bank account as soon as possible.
"A total of $620 million was immediately transferred into Najib's bank account at AmIslamic Bank.
"The remaining $61 million was transferred on March 25," he said.
Najib, 70, is facing four charges of using his position to obtain bribes totalling RM2.3 billion from 1MDB funds and 21 charges of money laundering involving the same amount.
Hearing before presiding judge Datuk Collin Lawrence Sequerah continues.