Friday, October 23, 2020

Malaysia keen to avoid another 1MDB money-laundering scandal


Financial scandals like the one involving Malaysian sovereign wealth fund 1MDB are unlikely to happen again in Malaysia, said the country’s central bank governor.

1MDB — set up to promote Malaysia’s development — has been at the center of one of the world’s largest corruption and money laundering scandals, as billions of dollars went missing from the fund. It tarnished Malaysia’s image as a safe place to do business in and dented foreign investors’ confidence in putting money in the country.

But Nor Shamsiah Mohd Yunus, the governor of Bank Negara Malaysia, said on Saturday the new government has taken a number of steps to prevent such financial scandals from happening again.

“One of the structural reforms that the government has introduced is to put in place a framework, a system, a culture that will eradicate corruption,” the central bank governor told CNBC’s Geoff Cutmore at the annual meeting of the World Bank and the International Monetary Fund in Washington.

- Advertisement -

She added that earlier this month, Malaysian lawmakers passed a bill to set up a national body to coordinate investigations into financial crimes. Meanwhile, the central bank is “continually strengthening the compliance culture in financial institutions so that the financial integrity of our financial system is maintained,” she said.

When CNBC asked whether she’s comfortable in thinking that such financial scandals will never happen again, Nor Shamsiah responded “yes.”

Authorities in at least six countries — including the U.S., Switzerland and Singapore — have investigated suspected wrongdoing related to 1MDB.

The U.S. Justice Department estimated that $4.5 billion was diverted from the fund and laundered through a complex web of bank accounts and shell companies across multiple countries, Reuters reported. Of that, millions of dollars allegedly ended up in former Malaysian Prime Minister Najib Razak’s personal bank account.

- Advertisement -

The scandal, which also involved U.S. investment banking giant Goldman Sachs, was believed to be responsible for the toppling of Najib’s government in Malaysia’s general elections last year. Najib, facing multiple charges on corruption and abuse of power, has denied any wrongdoing.


Goldman Sachs agrees $3 billion settlement with US DoJ over 1MDB corruption scandal

Goldman Sachs has agreed to pay nearly $3bn (£2.3bn) in the US to end a probe of its role in Malaysia's 1MDB corruption scandal. The...

Hong Kong fines Goldman Sachs $350 million over 1MDB scandal

Goldman Sachs ignored multiple red flags over the multibillion-dollar fundraisings it arranged for state fund 1Malaysia Development Berhad, Hong Kong’s financial regulator said on...

Texas attorney general Ken Paxton fires top aide who accused him of bribery

Lacey Mase, one of the top aides who accused Texas Attorney General Ken Paxton of crimes including bribery and abuse of office, has been fired, she told The...

Fundraiser Elliott Broidy pleads guilty in foreign agent case linked to 1MDB

Major Republican Party and Trump fundraiser Elliott Broidy pleaded guilty Tuesday to acting as an unregistered foreign agent, admitting to accepting millions...

Germany issues international arrest warrant for founders of law firm at the centre of Panama Papers

Germany has issued international arrest warrants for the two founders of the firm at the centre of the tax haven scandal exposed by the...

Latest News

This Week

Billionaire Robert Smith to Pay $140 million after admitting to tax evasion

Billionaire Robert Smith will pay about $140 million and acknowledge wrongdoing to end a four-year U.S. tax investigation involving assets held in offshore tax...

UAE suspends licences of 200 law firms over anti-money laundering compliance

Practicing licences of 200 law firms in the UAE have been suspended for a month for not following the prescribed procedures to combat money...

Mexico’s ex-army chief arrested in US on charges of drug trafficking, money laundering

Former Mexican Defense Secretary Gen. Salvador Cienfuegos, who led the country’s armed forces for six years under then-President Enrique Peña Nieto, has been arrested...

Berkshire Hathaway to pay $4.1m to settle Iran sanctions violation

Berkshire Hathaway Inc. has agreed to pay roughly $4.1 million to settle allegations that a Turkish subsidiary violated U.S. sanctions on Iran. The U.S. Treasury Department on...

Adblock Detected!

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by whitelisting our website.

Enable Notifications    Ok No thanks