AMMB to pay RM2.83 bln to M'sian govt for 1MDB-related se lement

KUALA LUMPUR: The Ministry of Finance (MoF) has announced that AMMB Holdings Bhd (AMMB) has agreed to a RM2.83 billion global se lement on all outstanding claims and actions in relation to the AmBank Group’s involvement in the 1Malaysia Development Bhd (1MDB) ma er.

This latest global se lement is part of the Malaysian Government’s continuing recovery efforts that it is 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 (US$3.9 billion) se lement in July 2020,” the MoF said in a statement yesterday.

These se lements 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. The global se lement by AMMB also addresses the Securities Commission Malaysia's (SC) requirements on compliance with its laws and guidelines, it said.

As part of the terms for the global se lement, the SC will require AmInvestment Bank Bhd to take corrective measures, including pu ing in place systems and processes to strengthen their due diligence framework for submission of corporate proposals.

“This latest se lement is beneficial for the Malaysian people. Resolving this through the court system would have cost a lot of time, money, and resources. With this se lement, the payment of the monies will be expedited, instead of being held up by lengthy court ba les, and can be utilised to fulfil 1MDB’s outstanding obligations,” said Finance Minister,Tengku Datuk Seri Zafrul Aziz in the statement.

This se lement amount is in addition to the RM53.7 million penalty already imposed by Bank Negara Malaysia (BNM) and paid by the AmBank Group, which has taken comprehensive measures to address the lapses associated with these transactions.

These include measures under a remediation programme that 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 is well placed to continue safeguarding depositors’ funds and shareholders’ interests, and its future growth.