Bank Negara to recommend administrative action against 1MDB for non-compliance

KUALA LUMPUR - Bank Negara Malaysia (BNM) will submit recommendations for administrative enforcement to be taken against 1Malaysia Development Bhd (1MDB) by the end of April for the non-compliance of the state-owned fund with regards to its three investments abroad.

Speaking to a press conference in conjunction with the release of the central bank's annual report 2015 today, governor Tan Sri Dr Zeti Akhtar Aziz said the submission will be made to Attorney-General Tan Sri Mohamed Apandi Ali, who has the final say on the case.

She revealed that the central bank had not received "documentary evidence" from 1MDB within the stipulated time frame as requested.

Hence, Zeti said an action will be taken against 1MDB which could involve penalty, compound and other forms of recommendation.

Recall that Bank Negara had in October revoked its permission for 1MDB's investments abroad totaling US$1.83 billion due to "inaccurate or incomplete disclosure of information".

The move was followed by an order to 1MDB to bring the money home.