International investigations of money laundering involving the state-backed 1Malaysia Development Bhd (1MDB) investment fund will probably create shock waves through the parts of the global financial order that were complicit in its looting, and there were plenty, stretching from Singapore to Switzerland and beyond.
They are likely to result in the punishment of international banks and bankers and pressure various jurisdictions around the world to strengthen their anti-money laundering controls and laws. The US Department of Justice (DOJ) alleges US$4.5 billion was stolen from this Malaysian state fund, much of it laundered in jurisdictions like the US, UK, Luxembourg, Switzerland and Singapore.
The domestic probe of 1MDB by the newly-energized Malaysian Anti-Corruption Commission (MACC) is nearly complete, and the MACC will shift its focus outside Malaysia, MACC Chief Commissioner Mohd Shukri Abdull told reporters on July 7.
International collaboration on investigations of 1MDB has accelerated in recent days.
On July 10, the Swiss Attorney General Michael Lauber met the Malaysian Attorney General Tommy Thomas in Kuala Lumpur, said the Swiss Office of the Attorney General. The two officials discussed coordination on investigations of 1MDB. In contrast, when Najib Razak was Malaysian Prime Minister till his shock defeat in the Malaysian election on May 9, he forestalled cooperation on investigating 1MDB with the authorities of Switzerland and other countries.
Reuters reported on July 10 that Malaysian investigators of 1MDB plan to visit the Washington to meet US officials including those from the DOJ. The visit may happen before the end of July, the news agency said.
Tim Leissner, the former Southeast Asia head of Goldman Sachs, is negotiating with US prosecutors to potentially plead guilty to criminal charges related to 1MDB, the Wall Street Journal reported on July 9. Leissner is seeking an agreement with US prosecutors that would involve his cooperation with the US DOJ’s investigation into 1MDB and Goldman, the newspaper quoted unnamed sources saying.
Goldman raised US$6.5 billion in three sales of 1MDB bonds from 2012 to 2013. More than US$2.5 billion raised from these bonds was misappropriated by 1MDB officials, their relatives and associates, according to Just ice Department documents. The US bank has repeatedly maintained it is innocent, merely managing the bond sales with no involvement in what happened after that.
Part of the funds raised from these bonds flowed into bank accounts of “Malaysian Official 1,”, widely assumed to be Najib, according to document made public by the DOJ’s kleptocracy unit documents. Najib, who was chairman of 1MDB till May 2016, is scheduled to stand trial in Malaysia on four charges related to 1MDB withnin several months.
There is a high probability that the authorities of the US, Switzerland and other countries will punish some banks and bankers. So far there has been no major enforcement action by the US authorities in the 1MDB case.
It is unrealistic to assume this will remain the case, because US prosecutors like to prove success by the conviction of suspects. In its July 10 press release, the Swiss Office of the Attorney General said it is investigating and conducting criminal proceedings against six people, namely two former 1MDB officials, two former officials of the United Arab Emirates and two executives of PetroSaudi International, a Saudi oil exploration and services company.
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The Monetary Authority of Singapore (MAS) is scrutinizing new information emerging from Malaysia and elsewhere on the 1MDB scandal, MAS managing director Ravi Menon told Singapore media on July 4.
“And now after the (Malaysia) general election, with the Malaysians authorities stepping up their investigations, we’ve been in close contact,” said Menon. “We are still looking at certain individuals and there are others we are looking forward to interview. If there is any new evidence, we will relook at the banks again. So far, (that) hasn’t been the case.”
A staggering RMB100 billion (US$24.8 billion) of funds linked to Najib and his wife, Rosmah Mansor, are stashed in bank accounts outside Malaysia, alleged an unnamed source quoted by Sarawak Report. Much of that money is in Hong Kong bank accounts and travelled through German and Swiss banks, alleged Sarawak Report, a London whistleblower website. Asia Sentinel was unable to verify Sarawak Report’s claims.
It is not known if any of this money is linked to 1MDB. However, if investigators from Malaysia and other countries uncover billions of dollars in Hong Kong bank accounts linked to Najib or Rosmah, it will worsen the perception of Hong Kong as a money laundering hub.
The last thing Hong Kong needs is to be tainted with dirty Malaysian money, since the Asian financial hub may possibly receive a visit from the Financial Action Task Force (FATF) around July or August. This is part of the mutual evaluation of Hong Kong by the FATF, an intergovernmental body which sets policies to combat money laundering. A bad rating of a jurisdiction by FATF will result in reputational damage and higher compliance costs for financial institutions operating in that jurisdiction.
The UK is scheduled to hold discussions with the FATF in October. The FATF mutual evaluation of Luxembourg is scheduled for 2020. If the FATF finds the UK, Luxembourg and Hong Kong did not do enough to prevent laundering of 1MDB funds, these jurisdictions will be under pressure to strengthen their anti-money laundering laws and policies.
Although the FATF has completed its latest mutual evaluations of the US and Switzerland in 2016, it cannot be ruled out that these two countries may beef up their anti-money laundering regulations if ugly new revelations related to 1MDB are found to implicate their financial systems.
Thanks to the 1MDB scandal, the Singapore authorities have jailed several bankers, fined some banks including DBS, UOB and UBS, and closed the local branches of Falcon Private Bank and BSI Bank. If new revelations related to 1MDB emerge, the Singapore government may possibly implement further anti-money laundering controls. The world financial order will never be the same again after the 1MDB scandal.
– https://www.asiasentinel.com
Dear Mohd. Kamal bin Abdullah, thank you for your article. It would have been useful for each of your statements to provide a link to a reference article as a footnote.
ReplyDelete"Rumours" and verified information can change drastically the quality and reputation of a blog like yours!
Very looking forward to reading an update to this article with references and all upcoming ones!
Well said.
DeleteI also think this is a very weak article because it is composed of hearsay or made up stuff.
Malaysian wealth has been systematically pirated and salted in overseas by our elected leaders.we have to take our inventory like magna carta 1215 All culprits should be brought to justice
ReplyDeleteWow if only the truth will resurface and the rakyats knows what action needs to be taken next
ReplyDeleteMalaysia's wealth has been systematically plundered by our elected leaders. Hope more info exposes these culprits and action against them can be soon taken.
ReplyDeleteThe amount of money misappropriated is staggering !. Send the culprits to the 'guillotine'.
ReplyDeleteWhat more to be added?? The man in the street is called by the happenings and
ReplyDeleteUnable to say anything.
Sorry!
The culprits should be tried and put behind bars for a long period of time
ReplyDeleteYes, but better to to put them behind bars without being tried. We still so many stupid people defending them! Perhaps these people should join them behind bars!
DeleteThese kleptocrats do not operate alone. Najib alone cannot do it. This job needs the helping hands from clerks to the highest authority in the public and private sectors. Why the PDRM, SPRM ETC are not investigating and charging these people? I do not understand!
ReplyDeleteMany agency under mo1 also been corrupted
DeleteHopefully,final answer will come out soon.
ReplyDeleteFiring squad is the appropriate remedy for corrupt government offioffic
ReplyDeleteOne man destroyed a 61 years of political supremacy rule. One man who left the rot came back to rule again and implement the Rule of Law. Malaysia is a country of great pride. An example of an emerging nation of development. But the greed of the ruling party politicans brought disgrace. The poor in the rural areas are still poor. The rich in the ruling party plundered the nation because of power and greed. What are you going to take when you are laid 6 feet underground. You will have to face the Almighty God. Corruption will kill the guilty. Your family will suffer when you are gone. The stacks of currency notes and accumulated properties will not accompany you to your grave. Repent and regret your past.
ReplyDeleteWell, laws aside, & not withstanding that all are innocent until proven guilty, we must all be reminded that those who sin will be thrown into eternal fire - that will be the most dreadful eternal punishment. Hope all sinners will repent & stand up to their sins.
ReplyDeleteYes we agree so much money lost & missing once the government changed on last may 9th.reflected by total collapse of the entire government machinery. I believe if the cause had been identified together with capable individuals and line of actions we are going to ne very fast to arrest this issues & to put all to the right track. Being an Economy man I foresee & agree with country's huge debt but very optimistic with current financial and economy policy to be drawn will enable us to sail through this tough time. If leakage is minimize the acc are going to show big balance and is going to be spent on Rakyat & than we can experience quality of life in the country through increase in purchasing pover which will lead us to have sense of ownership ovet the country. The nation will start to love the country. This act will gradually erase all negatively like corruption,being loyal and others. It will put the country to the correct path. With god bless, Together we achieve. Thanks
ReplyDeleteMost of Malaysian very kind.. Short period they forget everything we must teach lesson this kind of people if you want save this Nation future n coming generation we don't want be suffering like other Countries
ReplyDeleteThere is no way that those evil doers can escape from justice.Put them all behind bars till theirs dying day!!!!
ReplyDeleteI'm now proud to be Malaysian again, but looking at the current PKR standing where all PKR MP's willing to give up their seat to Anwar but the WIFE N DAUGHTER refused to vacate their seat. I just do not want to have another game of thrones. Malaysia belong to all Malaysian not to one family. Previously we have corrupt government we do not want to see cronyism and nepotism returned n again corrupt our our Government. Just don't want to see Father is d PM, Mother is d DPM n their daughter is d Finance Minister.
ReplyDeleteIf anyone want to kmow where Najib & Rosmah plundered the money from can google
ReplyDeleteNeil Keenan Update ! Malaysian Dead Man Walking Caper - Part 2 June 17, 2018
Well Done
ReplyDeletePH heroes are doing a Fantastic Job! Happy Birthday to Malaysia
ReplyDeleteMasya Allah..akalu betul la..nak bawa ke mana duit tu bro..masuk kubur ker? Habis la ko..
ReplyDeleteEn Mohd Kamal Abdullah
ReplyDeleteJangan risau .Perkara ini dalam pengetahuan Tun M, Mukhriz, Muhyuddin, Shafie Afdal dan Khairuddin Hassan. Mereka telah dimaklumkan oleh empunya Fund yang selama ini (sebelum diselewengkan oleh banyak pihak) dijadikan Tabung Pinjaman kepada 74 buah negara di dunia termasuk Malaysia). Sejak penyelewengan Tabung ini empunya telah batalkan semua perjanjian pinjaman dan mengarahkan semua negara berkenaan pulangkan semua wang dipinjam dan diseleweng beserta faedah. Selagi wang yang dipinjam dan diseleweng serta faedah tidak dikenbalikan maka negara-negara berkenaan tidak akan dibenarkan meminjam lagi.
Malaysia difahami tidak ada cukup wang untuk bayar balik kesemua yang dituntut oleh Empunya Tabung. Andainya dalam tempoh masa yang diberi oleh Empunya untuk Malaysia bayar balik gagal dilaksana maka melalu ICJ Malaysia akan diistihar muflis. Maka terjuallah Malaysia keseluruhannya.
Inilah sebenarnya masalah yang Tun M cuba selesaikan. Kesilapan Tun M dalam hal ini adalah:-
sepatut sebaik saja menang menjadi PM beliau terus mengurus perkara ini ( beliau telah diberi maklum perkara sebelum beliau menang jadi PM). Pada masa itu beliau ada peluang untuk berunding ( beliau patunya memahami pendirian lillahi ta'ala Empunya kerana empunya pernah berkerja dalam di bawah Tun dahulu.Malangnya peluang itu tidak diambil. Sekarang Empunya mengandaikan Tun M juga macam DSNajib Ingin mempunyakan Tabung tersebut.
Jadi kita doakan Tun M dengan pertolongan Allah dapat merungkai perkara ini jangan sampai negara tergadai.
Allahu'alam.