AMBANK Group was fined by Bank Negara in November 2015 for not reporting suspicious transactions in Najib Razak’s accounts, a central bank officer told the Kuala Lumpur High Court today.

Bank Negara senior investigating officer Ahmad Farhan Sharifuddin said the bank, where Najib held five accounts between January 13, 2011 and March 9, 2015, failed to submit the required suspicious transaction reports (STRs).

He did not disclose the amount of fine.

However, it was reported earlier that AmBank was slapped with a RM53.7 million fine on November 23, 2015, with respect to non-compliance with certain regulations by AmBank (M) Bhd and AmBank Islamic Bhd.

The penalties were in pursuant of Section 234 of the Financial Services Act 2013 and Section 245 of the Islamic Financial Services Act 2013, the bank said in a filing to Bursa Malaysia then. 

Najib had one savings account and four current accounts with AmBank’s Jalan Raja Chulan branch.

The former prime minister is facing seven criminal charges for receiving RM42 million in three of the accounts in 2014 and 2015.

Farhan, who is the fourth prosecution witness, led a central bank raid on AmBank’s Jalan Raja Chulan branch on July 6, 2015.

His cross-examination by the defence today got heated, when Farhan said neither the central bank nor AmBank were obligated to inform Najib of the suspicious transactions. 

Lead defence counsel Muhammad Shafee Abdullah asked Farhan whether the bank “take measures” to inform Najib when the suspicious transactions were flagged by the central bank. 

“My investigation is just to look at whether AmBank submitted STR papers or not. I did not go into the nature of the offences that could possibly be identified. That is not part of the investigation,” Farhan said. 

Shafee pressed Farhan on why Najib, as an account holder, was not informed of the suspicious transactions.

“The reporting institution should not disclose information to any other person,” Farhan replied.

“Your question is whether Datuk Seri Najib should be alerted? That amounts to tipping off.”

Shafee: “Do you agree with me that if AmBank had done its job and brought the matter to the account holder, my client would have been alerted as early as 2015 of any suspicious transactions.

Farhan: I have to disagree because that amounts to tipping off, which is forbidden under AMLA (Anti-Money Laundering Act).  

Farhan also maintained that two seized hand phones – a Blackberry and a Samsung – belonging to AmBank relationship managers Joanna Yu and Krystle Yap respectively, where handed over the Malaysian Anti-Corruption Commission in August, 2015. 

Najib faces three counts of criminal breach of trust, three counts of money-laundering and one count of abuse of power over the RM42 million he allegedly received into his personal accounts in 2014 and 2015.

Attorney-General Tommy Thomas led the prosecution while justice Mohd Nazlan Mohd Ghazali presided. – May 8, 2019.