1MDB scandal - Others taking action while BNM folding their arms, says Kit Siang

DAP Parliamentary Leader Lim Kit Siang is wondering whether new Bank Negara Governor Muhammad Ibrahim, the central bank’s Deputy Governors and its Board have decided to “fold their arms and do nothing” on the controversial 1MDB scandal rocking the global financial industry.

“They may want to pretend that the global crackdowns and exposes on 1MDB’s money-laundering activities do not exist and/or have nothing to do with Malaysia,” alleged Lim, who is also Gelang Patah MP, in a statement today.

If Ibrahim does not want to get involved in the 1MDB scandal, added Lim, he should convene an emergency meeting of Bank Negara’s Board of Governors on the matter. “The Board can decide on the way forward.”

In fact, argued the DAP veteran, Bank Negara should take proactive steps to contact its counterparts in other countries to secure information/intelligence about 1MDB’s alleged money laundering activities.

He warned that the central bank risked being exposed to the “height of international ridicule and even odium” given that monetary authorities like the Swiss Financial Market Supervisory Authority (Finma) and the Monetary Authority of Singapore (MAS) were taking punitive action on the 1MDB scandal. “The authorities in Singapore and Switzerland are taking action to close down banks.”

“They are initiating criminal prosecutions against bank officers for money-laundering and other financial offences connected with 1MDB.”

Lim was hoping that Bank Negara did not intend to remain “blissfully unaware and unconcerned” about “these 1MDB-related developments raging in the financial world.”

Singapore and Switzerland aside, pointed out Lim, the United States, Hong Kong and Luxembourg were also probing the 1MDB scandal.

The bottom line, charged Lim, appeared to be that Bank Negara did not seem to want to understand what money laundering was all about despite any number of laws.

At home, pointed out Lim, the country has an Anti-Money Laundering and Anti-Terrorism Financing Act 2013 (AMLA), among others. “It’s difficult to believe that even top Bank Negara officials do not understand the meaning of money laundering.”

Section 4 of the Act, summed up Lim, was crystal clear.

Source -FMT