A DEUTSCHE Bank (M) Bhd (DBMB) internal check revealed no red flag when 1Malaysia Development Bhd (1MDB) funds were transferred to a foreign account in 2011, the Kuala Lumpur High Court heard today.

Its assistant vice-president, Fatehah Md Salleh, said a background check was conducted before the US$110 million (RM483 million) was wired to the PetroSaudi International Ltd (PSI) account in RBS Coutts Bank Ltd on May 27, 2011.

The funds were transferred from the 1MDB account in DBMB, she added.

“We initiated background checks via preventive crime report and HotScan systems on PSI and RBS Coutts Bank Ltd,” said the prosecution witness.

“The subsequent reports on the companies found no impediment (no hit) to conduct money transfers. After obtaining approval, the payment was made through the ‘FXPCA’ system.”

Former prime minister Najib Razak is standing trial for corruption over the alleged misappropriation of RM2.28 billion in 1MDB funds.

He is facing 25 charges of abuse of power and money laundering for offences allegedly committed between 2011 and 2013.

DBMB global market division vice-president Nur Hasnee Taha Mohd Nordin said the funds were transferred from 1MDB to DBMB via five real-time electronics transfer of funds and securities transactions.

Nur Hasnee Taha confirmed that the May 27 transaction came from an AmBank account owned by the Terengganu Investment Authority (TIA), and was intended to purchase US$110 million of US currency.

“Then it was transferred to a JPMorgan Chase & Co. account in New York and RBS Coutts Bank Ltd account in Zurich to be credited to account number 11116073 as directed by TIA to DBMB.”

The trial before judge Collin Lawrence Sequerah continues next Monday. – June 9, 2022.