AG mantains 1MDB did not commit any offence under exchange laws

The government investment company 1Malaysia Development Berhad (1MDB) did not commit any offence under the Exchange Control Act 1953, said Attorney-General Tan Sri Apandi Ali.

"As far as 1MDB is concerned it needs to fill up the relevant form and respond to the queries by Bank Negara Malaysia. If Bank Negara does not request for certain or specific information, how could 1MDB be faulted as it has filled up the form as required and responded to the queries made," said Apandi.

Speaking at a press conference at the Attorney-General's Chambers here, Apandi added that 1MDB "rightfully furnished the information required" for the purpose of the remittances.

He said that 1MDB obtained three permissions from Bank Negara to make remittances, on Sep 29, 2009, Sep 6, 2010 and May 20 2011.

"It is noted that Bank Negara did not take more than three days to grant the permissions on all three occasions," said Apandi.

He added that the relevant exchange control forms, 09A and 06B do not require the applicant to supply the names of beneficiary owners or the bank account numbers of recipients or the manner as to how the funds are to be channeled.

Apandi said that when 1MDB requested Deutsche Bank (Malaysia) Berhad to remit to a different account, the bank sought clearance from Bank Negara.

"Bank Negara being the controller did not stop the remittance or direct Deutsche Bank (Malaysia) Berhad to advise 1MDB to revert to Bank Negara For a review of the permission. Clearly there was no information or further information requested by Bank Negara Malaysia at that material time," said Apandi.

He added that 1MDB rightfully furnished the information required for the purpose of the remittance.

Apandi said the alleged offence investigated by Bank Negara is Paragraph (4)(b) of of Part 1 of the Fifth Schedule to the Exchange Control Act 1953, namely knowingly or recklessly making a statement which is false in a material particular.

"In short the statement must be false and material to the subject matter i.e. the information requested by Bank Negara at the time when the application for remittances were sought for and in response to further information requested by Bank Negara," said Apandi.