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AMMB to pay Rm2.83bil to the government

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KUALA LUMPUR: The Ministry of Finance (MOF) has announced that AMMB Holdings Bhd (AMMB) has agreed to a Rm2.83bil global settlement on all outstandin­g claims and actions in relation to the Ambank Group’s involvemen­t in the 1Malaysia Developmen­t Bhd (1MDB) matter.

This latest global settlement 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’ Rm15.8bil (Us$3.9bil) settlement in July 2020,” the MOF said in a statement yesterday.

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. The global settlement 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 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.

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

This settlement amount is in addition to the Rm53.7mil penalty already imposed by Bank Negara 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.

“This global settlement will not affect or compromise Malaysia’s claims against individual­s like Jho Low, Jasmine Loo, and other parties related thereto and who are still being pursued in relation to the 1MDB scandal,” he said. — Bernama

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