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Bank Negara gives 1MDB time to repatriate funds

Syndicated News
Written by Syndicated News

KUALA LUMPUR — May 13, 2016: 1Malaysia Development Berhad (1MDB) will be given time to bring back money it has invested abroad on the understanding that it will be used to restructure its debt obligations.

Bank Negara had late last month issued a letter of administrative compound to 1MDB for failure to fully comply with directives issued under the Financial Services Act.

They included the requirement for the company to repatriate monies remitted abroad following the revocations of three permissions granted by the central bank in 2009, 2010 and 2011.

“The restructuring will take time,” Bank Negara Governor Datuk Muhammad Ibrahim said at a press conference to announce the gross domestic product growth for the first quarter of this year.

The central bank also reaffirmed an earlier statement that it had concluded its investigations into 1MDB.

According to Muhammad, 1MDB had stated its commitment to pay the compound before the May 30 deadline and that marks the conclusion of the investigations.

Muhammad declined to reveal the amount of the compound as it is against Bank Negara’s practice to disclose the quantum against any individual or entity to the public.

He said that in terms of investigations not under the rules, regulations and law under
the central bank, Bank Negara will extend its cooperation to other regulatory bodies.

On the dispute between IMDB and International Petroleum Investment Company of Abu Dhabi, he said both needed to settle it themselves and the central bank would not interfere. — Bernama

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