AMMB Holdings Bhd has agreed to pay the government RM2.83billion to settle all outstanding claims and actions in relation to its involvement in the 1Malaysia Development Bhd (1MDB) scandal.

In a statement today, the Finance Ministry said the settlement, which has global coverage, is part of the government’s efforts to recover from various parties funds and assets directly or indirectly linked to the investment fund

Ambank Group will have to pay the settlement in addition to a RM53.7 million penalty imposed by Bank Negara Malaysia. 

The Finance Ministry stated that the terms of the settlement are in compliance with the Securities Commission’s (SC) laws and guidelines.

The SC will require AmInvestment Bank Bhd to take corrective measures, including putting in place systems and processes to strengthen its due diligence framework, as part of the settlement terms.

The ministry added that the new board and senior executives of the banking group have taken comprehensive measures to address the lapses associated with these transactions, including remedial measures prescribed by the central bank.

The group is well placed to continue safeguarding depositors’ funds and shareholders’ interests, and its future growth with these measures in place, said the Finance Ministry.

This follows Goldman Sachs’ RM15.8 billion settlement payment to the government over the Wall Street titan’s role in the defrauding of 1MDB.

The Finance Ministry said these settlements do not absolve any entities and individuals of criminal  involvement in 1MDB, adding that they will continue to be pursued through the criminal justice system.

The global settlements will not affect or compromise the government’s hunt for  fugitive businessman Low Taek Jho, Jasmine Loo and other parties related to the scandal as well as the claims laid by Putrajaya against these individuals who are at the centre of the scandal.

Finance Minister Tengku Zafrul  Aziz welcomed the Ambank settlement.

“This latest settlement is beneficial for the Malaysian people. Resolving this through the court system would have cost a lot of time, money and resources. With this settlement, the payment of the monies will be expedited, instead of being held up by lengthy court battles, and can be utilised to fulfil 1MDB’s outstanding obligations,” he said. – February 26, 2021.