AMBB Holdings to pay RM2.83b settlement on 1MDB

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The Ministry of Finance (MoF) has announced that AMMB Holdings Bhd (AMMB) has agreed to a RM2.83 billion global settlement on all outstanding claims and actions in relation to the AmBank Group’s involvement in the 1Malaysia Development Bhd (1MDB) matter.

This latest global settlement is part of the Malaysian Government’s continuing recovery efforts that it is pursuing against all parties directly or indirectly involved in 1MDB and its related entities.

“This follows the government’s successful negotiations on the Goldman Sachs’ RM15.8 billion (US$3.9 billion) settlement in July 2020,” the MoF said in a statement today.

These settlements will not absolve other entities and individuals of their alleged wrongful involvement in 1MDB, and they will continue to be pursued through the criminal justice system. The global settlement by AMMB also addresses the Securities Commission Malaysia’s (SC) requirements on compliance with its laws and guidelines, it said.

As part of the terms for the global settlement, the SC will require AmInvestment Bank Bhd to take corrective measures, including putting in place systems and processes to strengthen their due diligence framework for submission of corporate proposals.

“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,” said Finance Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz in the statement.

This settlement amount is in addition to the RM53.7 million penalty already imposed by Bank Negara Malaysia (BNM) and paid by the AmBank Group, which has taken comprehensive measures to address the lapses associated with these transactions.

These include measures under a remediation programme that BNM required the AmBank Group to implement, led by the new board and senior management team currently in place. With these measures, the AmBank Group is well placed to continue safeguarding depositors’ funds and shareholders’ interests, and its future growth.

“This global settlement will not affect or compromise Malaysia’s claims against individuals like Jho Low, Jasmine Loo, and other parties related thereto and who are still being pursued in relation to the 1MDB scandal,” he said.

The MoF thanked the Attorney General’s Chambers, the SC, BNM, the Royal Malaysia Police, the National Anti-Financial Crime Centre, the Malaysian Anti-Corruption Commission, and the National Centre for Governance, Integrity and Anti-Corruption for their efforts in achieving this settlement.