Bank Negara Malaysia must investigate if funds originating from 1MDB were transferred to Prime Minister Najib Abdul Razak's accounts via Ambank, a DAP MP said in a memorandum to the central bank.

Segambut MP Lim Lip Eng said there could be a breach of the Anti-Money Laundering and Terrorist Financing Act 2011 and the Financial Services Act 2013.

In fact, he said, Ambank and the two officers alleged to assisted the transferred the funds from 1MDB or its subsidiaries to the bank account of Prime Minister Najib Abdul Razak did not deny the Wall Street Journal (WSJ) report on the matter.

"So I urge Bank Negara as the financial regulator to investigate if the law has been breached," he told reporters outside the Bank Negara Malaysia building in Kuala Lumpur today.

Lim earlier submitted the memorandum to Bank Negara governor Muhammad Ibrahim, through a central bank officer.

He said the matter will also be raised in Parliament during the Dewan Rakyat sitting starting Oct 17.

Lim also urged the central bank to emulate the Monetary Authority Singapore, who shut down the Singapore branch of Swiss Bank BSI following its investigations in the transfer of 1MDB funds.

"I want them to take the same action as Singapore, where the bank was closed over involvement in the 1MDB case and the CEO was arrested and charged. I want Bank Negara to do the same.

"If the allegations are true, Ambank must be shut down, its banking licence suspended and the officers involved dragged to court. Otherwise other banks can easily do the same," he said.

Lim had last Sunday lodged a police report urging investigation into allegations made in the WSJ report.

The WSJ reported that businessman and Najib's family friend Jho Low managed the prime minister's bank account with the help of two Ambank officers.

According to the law, banking institutions must report all transactions of more than RM50,000.

'We want to know the truth'

Meanwhile, DAP Youth vice-chief Syefura Osman urged Muhammad to fulfill his duties as central bank governor.

"We want to know the truth. Don't remain silent. Malaysians need to know where the money went," she said.

Earlier Muhammad said the central bank has closed its case on 1MDB after the state investment firm paid a fine for failure to comply with regulations on the transfer of funds.

This was unrelated to the alleged transfer of funds to Najib's account.

The United States Department of Justice in a civil forfeiture application in July said US$731 million of funds originating from 1MDB went to the bank account of 'Malaysian Official 1'.

Cabinet minister Abdul Rahman Dahlan said 'Malaysian Official 1' is Najib, but the fact that he is not named in the DOJ's lawsuit shows that the PM is not subject to the action.

Najib has repeatedly denied abusing public funds. His office did not respond to a request for comment on WSJ report.

Malaysiakini is contacting Ambank for comment.