EX-Bank Negara (BNM) governor Zeti Akhtar Aziz told the Kuala Lumpur High Court today that it took the bank nearly seven years to find out that US$700 million (RM3.2 billion) from 1Malaysia Development Bhd (1MDB) ended up in Good Star Ltd, a company owned by fugitive businessman Low Taek Jho.

Zeti said the transfer took a while to verify as following the money trail was a lengthy process.

The 46th prosecution witness said this in response to a question by Najib Razak’s lead counsel Muhammad Shafee Abdullah at the former prime minister’s trial involving the misappropriation of RM2.3 billion of 1MDB funds.

The court was told earlier the US$700 million transaction occurred in 2009 and the authorities discovered it in 2015.

Zeti, in response to Shafee asking why the transaction took so long to discover, said it is common.

She said she was told by financial authorities all over the world it takes many years to uncover and detect such wrongdoing, and that BNM did its due follow-ups by sending letters and emails to 1MDB.

BNM also asked about the status of 1MDB’s US$1 billion investment, but the fund did not reply, she said.

Zeti said in 2014, when 1MDB applied for more money, BNM rejected its application because its indebtedness kept increasing.

She said the central bank performed a multi-year probe after 1MDB officials failed to provide satisfactory answers on what happened to funds sent overseas in 2009.

Najib, 70, faces four charges of using his position to obtain bribes amounting to RM2.3 billion belonging to 1MDB and 21 charges of money laundering involving the same amount.

The trial before judge Collin Lawrence Sequerah continues. – Bernama, August 16, 2023.