AmBank group to pay RM2.8 billion in 1MDB settlement

 

AmBank group has agreed to a RM2.83 billion settlement on its involvement with 1MDB.

KUALA LUMPUR: The finance ministry has announced that AMMB Holdings Bhd has agreed to a RM2.83 billion global settlement on all outstanding claims and actions in relation to the AmBank Group’s involvement in the 1Malaysia Development Bhd matter.

This latest global settlement is part of the Malaysian government’s continuing recovery efforts that it is pursuing against all parties directly or indirectly involved in 1MDB and its related entities.

“This follows the government’s successful negotiations on the Goldman Sachs’ RM15.8 billion (US$3.9 billion) settlement in July 2020,” the ministry said today.

The ministry said the settlements will not absolve other entities and individuals of their alleged wrongful involvement in 1MDB, and they will continue to be pursued through the criminal justice system. The global settlement by AMMB also addresses the requirements of the Securities Commission of Malaysia on compliance with its laws and guidelines.

The finance minister, Tengku Zahfrul Aziz.

As part of the terms for the global settlement, the SC will require AmInvestment Bank Bhd to take corrective measures, including putting in place systems and processes to strengthen their due diligence framework for submission of corporate proposals.

“This latest settlement is beneficial for the Malaysian people. Resolving this through the court system would have cost a lot of time, money, and resources. With this settlement, the payment of the monies will be expedited, instead of being held up by lengthy court battles, and can be utilised to fulfil 1MDB’s outstanding obligations,” said finance minister Tengku Zafrul Aziz.

This settlement amount is in addition to the RM53.7 million penalty already imposed by Bank Negara and paid by the AmBank Group.

The group has said it had taken comprehensive measures to address the lapses associated with these transactions.

These include measures under a remediation programme led by the new board and senior management team currently in place.

“This global settlement will not affect or compromise Malaysia’s claims against individuals like Jho Low, Jasmine Loo, and other parties related thereto and who are still being pursued in relation to the 1MDB scandal,” Tengku Zafrul said.- FMT