After ‘overnight transfer’ claim, BNM says all ‘investments’ subject to procedure

 

Bank Negara Malaysia says it furnished information in connection with the accounts belonging to the husband of a former BNM governor to the ‘relevant law enforcement agency’.

PETALING JAYA: All investments abroad by resident entities are subject to the requirements under the Exchange Control Act 1953 that was in force prior to 2013, said Bank Negara Malaysia (BNM).

“These requirements and criteria governing such investments are transparent and published on BNM’s website,” the central bank said in a statement.

BNM was responding to testimony by former banker Tim Leissner that it approved an “overnight” foreign exchange transfer of US$1 billion from 1MDB to PetroSaudi International (PSI) after then central bank governor Zeti Akhtar Aziz’s husband had allegedly been bribed to “make it happen”.

Leissner, the star witness in the trial of Roger Ng, former Goldman Sachs head of investment banking in Malaysia, described the overnight transfer of the US$1 billion from 1MDB to PetroSaudi as “unprecedented”.

In response, BNM said that all submissions made by 1MDB, including the said application, were subject to the same approval criteria and internal governance process that apply to any submission by other entities to BNM.

Touching on previous reports on information received from foreign financial intelligence units (FIUs) with respect to the accounts belonging to the husband of a former BNM governor, the central bank said it has furnished information to the relevant law enforcement agency.

The central bank said this was done in April 2016 in accordance with its responsibilities under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.

The Exchange Control Act 1953 has since been replaced by the Financial Services Act 2013. - FMT