Malaysia's central bank to act against 1MDB for failing to provide documents on overseas funds

[KUALA LUMPUR] Malaysia's central bank said on Wednesday it would pursue administrative action against 1Malaysia Development Bhd (1MDB), after the state fund failed to provide documents on its finances abroad.

Bank Negara Malaysia governor Zeti Akhtar Aziz said 1MDB had missed the central bank's deadline to provide supporting documents showing that the fund's overseas finances had been earmarked for a restructuring programme and to repay its foreign debts.

The central bank had requested the documents after 1MDB failed a directive to repatriate a total of US$1.8 billion from its accounts overseas.

The central bank had issued the directive and revoked three of 1MDB's overseas investment permissions, citing breaches of the Exchange Control Act 1953 (ECA) in August last year.

"As it is being assessed that they (1MDB) have not fully complied with the bank's direction, the bank is pursuing appropriate administrative action as allowed by the laws under which the bank operates," Ms Zeti said.

Ms Zeti said recommendations for action were being prepared and would be submitted to the Attorney-General's Chambers before her tenure as governor ends in April.

REUTERS