Bank Negara governor Zeti Akhtar Aziz today said the central bank has recommended enforcement actions with regards to the probe on state-owned 1MDB.

She said the recommendations were included in the investigation papers that was handed over to the attorney-general this week.

"The bank has submitted its investigation papers to the attorney-general with the recommendation for the appropriate enforcement action," she said.

She declined to disclose any findings of the investigation saying that she was prohibited by law from doing so.

 

“If we are called by the Public Accounts Committee (PAC), that is the only other avenue where the bank will be able to respond to questions on this investigation,” she added.

This was her first public appearance in weeks after she and other heads of enforcement agencies came under scrutiny over the probe.

The probe was controversial as it also involved the transfer of RM2.6 billion into Prime Minister Najib Abdul Razak's personal bank accounts.

Since then, Abdul Gani Patail was replaced as attorney-general.

His successor went on to disband the special task force, comprising the police, Bank Negara, Malaysian Anti-Corruption Commission (MACC) and Attorney-General's Chambers.

The MACC and Bank Negara have since proceeded with their respective investigations.

However, MACC investigators were arrested and quizzed by the police while Zeti also faced various allegations.

Not under Bank Negara's purview

PAC hearings have also been suspended until a new chairperson can be appointed on Oct 19, after incumbent chairperson Nur Jazlan and three other members were appointed ministers and deputy minister thus having to relinquish their PAC posts.

 

Asked about the RM2.6 billion deposited into Prime Minister Najib Abdul Razak’s private account, Zeti reiterated that she could not comment on individual accounts.

 

However, she said the issue was not under Bank Negara’s purview though the bank has provided all available information to the relevant authorities whether from financial instructions or other central banks.

 

Speaking generally, Zeti ( photo ) said banks are supposed to conduct a due diligence process after which suspicious transactions would be reported to Bank Negara via a Suspicious Transaction Report (STR).

 

Otherwise, Bank Negara would not be aware of the transaction.

 

Bank Negara deputy governor Nor Shamsiah Mohd Yunus added that even the central bank has no access to the conduct of specific accounts unless a STR was lodged.

 

To a question whether a STR was lodged in the case of funds the deposited into Najib’s account, she replied, “We are investigating on the compliance of financial institutions on this requirement.”

 

Previously, questions had been raised as to whether Bank Negara and the tax authorities had been aware of the large transaction.