AMMB TO PAY RM2.83B OVER 1MDB SCANDAL
Finance Ministry says AmBank Group has taken measures to address transaction lapses
AMMB Holdings Bhd has reached a global settlement totalling RM2.83 billion on all outstanding claims and actions in relation to the AmBank Group’s involvement in the 1Malaysia Development Bhd (1MDB) scandal.
Announcing this yesterday, the Finance Ministry in a statement said the AmBank Group had taken comprehensive measures to address the lapses associated with these transactions.
These, it said, included measures under a remediation programme that Bank Negara Malaysia (BNM) required the AmBank Group to implement, led by the new board and senior management team currently in place.
With these measures, the AmBank Group was well-placed to continue safeguarding depositors’ funds and shareholders’ interests, and its future growth, it said.
The ministry said the latest global settlement was part of the government’s continuing recovery efforts on pursuing against all parties directly or indirectly involved in 1MDB and its related entities.
“This follows the government’s successful negotiations on the Goldman Sachs’ RM15.8 billion settlement in July last year.
“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,” said the ministry.
The ministry added that the global settlement also addressed the Securities Commission’s (SC) requirements on compliance with its laws and guidelines.
It said that as part of the terms for the global settlement, the SC would require AmInvestment Bank Bhd to take corrective measures, including putting in place systems and processes to strengthen its due diligence framework for submission of corporate proposals.
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the settlement was beneficial for Malaysians.
“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 used to fulfil 1MDB’s outstanding obligations,” he said.
This settlement amount is in addition to the RM53.7 million penalty already imposed by BNM and paid by the AmBank Group.
The global settlement, read the statement, would not affect or compromise Malaysia’s claims against individuals, such as fugitive financier Low Taek Jho, better known as Jho Low, 1MDB’s former general counsel Jasmine Loo, and other parties who are still being pursued in relation to the 1MDB scandal.