Malaysia’s AmBank to pay $700 million in 1MDB-linked settlement
01 Mar 2021

Malaysian banking group AMMB Holdings Berhad (AmBank) said on Friday it will pay the government 2.83 billion ringgit ($699 million) to settle claims linked to a massive financial scandal at state fund 1MDB, a hefty payment that is expected to have a material impact on the group’s earnings.

AmBank Group has been under scrutiny over its role in the alleged theft of $4.5 billion from 1Malaysia Development Berhad, a state fund former prime minister Najib Razak set up in 2009.

Last year, Najib was found guilty of corruption and money laundering over the transfer of millions of dollars linked to a 1MDB unit into his Ambank accounts between 2014 and 2015. He denies wrongdoing and has filed an appeal.

In a filing with the bourse, AmBank said a provision for the sum will be recorded in the final quarter in the group’s financial year ending March 31.

That will translate to a loss of 93.89 sen per share, it said.

By Rozanna Latiff and Joseph Sipalan, Reuters, 26 February 2021

Read more at Reuters

RiskScreen: Tackling Financial Crime with Smart Technology

You can claim CPD minutes for this content, by signing up to our CPD Wallet

FREE CPD Wallet