MALAYSIAN BANK NEGARA REVOKED 3 PREMISSIONS TO 1MDB EXCHANGE CONTROL?

PETALING JAYA, Malaysia -  Bank Negara Malaysia has revoked three permissions granted to 1Malaysia Development Berhad (1MDB) for investments abroad worth US$1.83bil (RM7.58bil).

In a statement Friday, the central bank said the permissions were revoked as the investments were obtained based on inaccurate or incomplete disclosure of information.

“The Bank at all times expects full and accurate disclosure of information by applicants in considering any application under the Exchange Control Act 1953 (ECA).

“On its part, the Bank concluded that permissions required under the ECA for 1MDB’s investments abroad were obtained based on inaccurate or without complete disclosure of material information relevant to the Bank’s assessment of 1MDB’s applications,” said the statement.

The statement added that the Bank has revoked three permissions granted to 1MDB under the ECA for investments abroad totalling US$183bil.

It also issued a directive under the Financial Services Act 2013 to 1MDB to return the US$1.83bil to Malaysia and submit a plan to the Bank for this purpose.

The statement also said that the bank would extend its full cooperation to ongoing investigations.

On Thursday, the Attorney-General’s Chambers (AGC) cleared 1MDB of any wrongdoing in relation to an investigation initiated by Bank Negara into its investments overseas.

Bank Negara said the Attorney-General’s decision with respect to the investigations on 1MDB related to its recommendation to initiate criminal prosecution against 1MDB for   breaches  under 
the Exchange Control Act 1953 (ECA).

The Star