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KUALA LUMPUR, February 26 – AMMB Holdings Berhad has agreed to pay RM2.83 billion to the Malaysian government as a comprehensive settlement on all claims and pending actions regarding AmBank Group’s involvement in the 1Malaysia Development Berhad (1MDB) matter, announced today the Ministry of Finance.
The ministry said this agreement is part of the Malaysian government’s ongoing efforts against all parties directly or indirectly involved in 1MDB and entities linked to 1MDB to recover funds.
Finance Minister Datuk Seri Tengku Zafrul Aziz said the agreement agreed with AMMB Holdings would allow for a faster recovery of funds to be used for 1MBD financial obligations, compared to lengthy court processes.
“This latest settlement is beneficial to the Malaysian people. Resolving this through the court system would have cost a lot of time, money and resources.
“With this agreement, the payment of the monies will be accelerated, instead of being delayed by long court battles, and can be used to meet the outstanding obligations of 1MDB,” it said in the statement.
The ministry said AMMB Holdings’ global agreement will address the Malaysian Securities Commission (SC) requirements on compliance with the regulatory body’s laws and guidelines.
“As part of the terms of the global agreement, the CS will require AmInvestment Bank Berhad to take corrective measures, including the implementation of systems and processes to strengthen its due diligence framework for the submission of corporate proposals,” the ministry said.
This global settlement is in addition to a 53.7 million ringgit fine that Bank Negara Malaysia (BNM) had previously imposed and which had been paid by AmBank Group, the ministry said.
The ministry said AmBank Group has taken comprehensive steps to address “lapses” associated with transactions, including steps under a remediation program that BNM required AmBank Group to implement and which is being led by the new board of directors and the senior management team of the banking group. .
“With these measures, the AmBank Group is well positioned to continue safeguarding depositors ‘funds and shareholders’ interests, and their future growth,” the ministry also said.
“This global agreement will not affect or compromise Malaysia’s claims against individuals like Jho Low, Jasmine Loo and other parties related to it and who are still being prosecuted in connection with the 1MDB scandal,” the ministry added.
Businessman Low, whose real name is Low Taek Jho, and former 1MDB general counsel Loo are among those believed to be fugitives who have fled the country and are wanted back in Malaysia to face charges for their role in huge 1MDB financial scandal.
Regarding the global agreement with AMMB Holdings, the ministry thanked the Attorney General’s Office (AGC), SC, BNM, the Royal Malaysian Police, the National Center for Combating Financial Crime (NAFCC), the Anti-Corruption Commission of Malaysia (MACC) and the National Governance, Integrity and Anti-Corruption Center (GIACC) for their efforts to achieve the agreement.
According to the AmBank Group website, AMMB Holdings is the publicly listed holding company of AmBank Group, while the group is said to be the sixth largest banking group in the country by assets, with around RM9 billion of capitalization. market and RM169.2 billion worth. of assets as of March 31, 2020.
In today’s ministry statement, it also said that the global deal with AMMB Holdings follows the Malaysian government’s previous successful negotiations in July 2020 with Goldman Sachs for a RM15.8 billion (US $ 3.9 billion) deal. on the 1MDB affair.
However, the ministry assured that such agreements will not prevent Malaysia from continuing to persecute others, noting: “These agreements will not absolve other entities and individuals of their alleged unlawful participation in 1MDB, and will continue to be prosecuted through the criminal justice system. “.
Under the previous $ 3.9 billion settlement that similarly settled all outstanding charges and claims against Goldman Sachs, the Malaysia settlement includes Goldman Sach’s cash payment of $ 2.5 billion (RM10.6 billion) and collateral. of the total recovery value of at least $ 1.4 billion. (RM5.9 billion) in assets traceable to diverted income from three 1MDB-linked bonds he had helped organize.
The ministry had said it was confident that Malaysia was getting more money from Goldman Sachs compared to previous attempts and that such an out-of-court settlement saves a lot of time, money and resources compared to going through the courts.
The ministry had also previously said that the Goldman Sachs deal would not affect the country’s claims against others linked to the 1MDB scandal, including Low, and that Goldman Sachs acknowledges the misconduct of two of its former employees in the matter.
Earlier, in a written parliamentary response on November 25, 2020, the Finance Ministry said that the combined outstanding amount of government guaranteed debts owed by 1MDB and its former subsidiary SRC International Sdn Bhd amounts to 44.5 billion ringgit, and that the federal government must pay RM3. .2721 billion of this figure in 2021.
