Malaysia's central bank says will be guided by international protocols if US seeks assistance on 1MDB investigation

The headquarters of Malaysia's central bank, Bank Negara Malaysia in Kuala Lumpur, on Jan 29, 2013. PHOTO: REUTERS

KUALA LUMPUR (THE STAR/ASIA NEWS NETWORK) - Malaysia's central bank has said it will be guided by international protocols if the United States Department of Justice (DOJ) approaches the central bank for assistance in investigations into issues related to 1Malaysia Development Bhd (1MDB).

"When it comes to international corroborations, we are dictated by certain protocols," Bank Negara governor Datuk Muhammad Ibrahim said.

"We will abide strictly by those protocols when it comes to cooperation with any external investigating bodies," he stressed at a press conference in Kuala Lumpur.

The DOJ last month filed a civil suit against several individuals to seize over US$1 billion (S$1.4 billion) worth of assets, which it said were the result of US$3.5 billion misappropriated from 1MDB.

Meanwhile, Bank Negara also reiterated that it has completed its investigations into 1MDB, and has taken all the necessary actions against the controversial state investment fund.

"We have completed all our investigations on 1MDB based on all the information (available for us) and the investigations papers."

"We have imposed a penalty on the company; We have taken all the necessary actions against the company as entrusted to us under the law, and we have closed the investigations," he said in response to questions on whether the central bank would initiate new investigation into 1MDB in view of the findings by the DOJ.

Bank Negara in April issued a compound to 1MDB for its failure to fully comply with directions it had issued under the Financial Services Act 2013.

These included requirements for 1MDB to repatriate monies remitted abroad following the revocations of the three permissions granted by BNM to 1MDB in 2009, 2010 and 2011 and failure to provide evidence to justify its inability to fully comply with the repatriation order.

1MDB in May said it had fully paid the undisclosed sum of the fine.

Bank Negara had then said the payment of the compound would mark the conclusion of the investigation by Bank Negara on the contraventions to the rules and regulations of the central bank.

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