Ambank shares fall on news of its RM54m penalty

Kuala Lumpur

SHARES of AMMB Holdings Bhd (Ambank group) slid by 0.7 per cent to RM4.56 on Tuesday after it revealed that it had agreed to pay Malaysia's central bank nearly RM54 million (S$18 million) in penalty for unspecified breaches of the law.

Given the paucity of details in its filing to the stock exchange on Monday, many have linked the fine to its non-compliance in relation to the controversial transfer of nearly US$700 million from units believed to be linked to beleaguered state-owned 1MDB to the personal bank accounts of Prime Minister Najib Razak in Ambank over 2013 to February this year.