Bring US1.83 billion investment back to Malaysia, Bank Negara tells 1MDB

Bring US1.83 billion investment back to Malaysia, Bank Negara tells 1MDB
Bank Negara Malaysia (BNM) has issued a directive to the 1MDB to repatriate its investment abroad totaling US1.83 billion.
KUALA LUMPUR:

Bank Negara Malaysia (BNM) has issued a directive to the 1Malaysia Development Berhad (1MDB) to repatriate its investments abroad totaling US1.83 billion.

In a statement, BNM revealed it had revoked three permissions granted to the strategic investment fund under the Exchange Control Act 1953 (ECA), to make the investments abroad.

BNM has also ordered 1MDB to submit a plan on the repatriation of these funds.

“As an investigative authority, the Bank is duty bound to conduct its investigations with the highest professional care and diligence. The Bank at all times expects full and accurate disclosure of information by applicants in considering any application under the ECA,” the statement read.

“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,” it further said.

On Thursday, the Attorney-General's Chambers (AGC) cleared 1MDB officials of making a false statement which was the focus of a Bank Negara probe.

The AGC said no offence was committed, so no further action would be taken.

In response to this, BNM in the same statement released today said it acknowledged that the prerogative to take action against 1MDB, was the AGC's alone.

"The Attorney General’s decision with respect to the investigations on 1Malaysia Development Berhad (1MDB) relates to Bank Negara Malaysia’s recommendation to initiate criminal prosecution against 1MDB for breaches under the Exchange Control Act 1953 (ECA). It is to be noted that under the Federal Constitution, the decision to initiate criminal prosecution lies solely with the Attorney General."

BNM said it will continue to extend its full cooperation to ongoing investigations by the Royal Malaysia Police and the Malaysia Anti-Corruption Commission.

1MDB was investigated for an offence under paragraph (4)(b) of Part 1 of the Fifth Schedule to the Exchange Control Act 1953 of knowingly or recklessly making a statement which is false in a material particular.