Wednesday, December 1, 2021

AmBank to pay RM2.83 billion settlement over 1MDB scandal

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

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AMMB Holdings Bhd has agreed to a RM2.83 billion global settlement on all outstanding claims and actions in relation to the involvement of AmBank Group in the 1MDB matter, the finance ministry said today.

In a statement, it said it was part of the government’s recovery efforts against all parties involved, either directly or indirectly, in 1MDB and its entities.

“This follows the government’s successful negotiations on Goldman Sach’s RM15.8 billion settlement in July 2020,” it said.

“These 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.”

According to the statement, the settlement also addresses the requirements by the Securities Commission of Malaysia on compliance with its laws and guidelines.

“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.”

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

It added that the settlement would not affect or compromise Malaysia’s claims against individuals like Low Taek Jho, Jasime Loo and other parties related to the 1MDB scandal.

“This latest settlement is beneficial for the Malaysian people,” Finance Minister Tengku Zafrul Aziz said in the statement.

“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.”

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