1MDB trial: No red flag on RM2.03b outflow from Najib’s account - banker

1MDB TRIAL | A bank branch manager testified today that no red flag was triggered by the transfer of US$620 million (RM2.03 billion) out of Najib Abdul Razak’s account in August 2013.

The manager of AmBank’s branch at Jalan Raja Chulan, R Uma Devi (above) told the Kuala Lumpur High Court that this was the reason why the transaction linked to the former prime minister was not stopped then.

The 37th prosecution witness was testifying during the RM2.28 billion 1MDB corruption trial against Najib, who also used to be the finance minister and the chairperson of the board of advisers of the sovereign wealth fund.

Her answer came during cross-examination by the accused’s defence counsel Wan Aizuddin Wan Mohammed.

Back in 2016, then attorney-general Mohamed Apandi Ali cleared Najib of wrongdoing in the 1MDB affair, claiming that Najib had received US$681 million (RM2.08 billion) in donations from Arab royalty and had returned US$620 million of the donation.

Previously, during the RM2.28 billion 1MDB graft trial, Uma testified that RM2.08 billion went into Najib’s account ending with 694 in nine tranches between March and April 2013 and that RM2.03 billion flowed out via five transactions between Aug 2 and Aug 23, that year.

While being questioned by Aizuddin today, the witness said that the transfer out in August 2013 did not trigger the commercial bank’s anti-money laundering alert as laid down by Bank Negara.

Uma explained that per the system in place back then, the trigger point for such an alert is related to the amount involved, the stated purpose of the transaction and the disclosure by the account holder of the reason for the transfer.

(The witness is testifying based on documents held by the bank branch as of 2015, as she was only transferred to the branch that year).

When Aizuddin asked if the bank would inform the customer if such an alert is triggered, she said no as that would amount to tipping off the account holder while the bank is investigating the matter.

Wan Aizuddin: The US$620 million (transferred out) was not stopped?

Uma: Nothing was done to stop it (she said based on the bank documents before her).

Gift by Arab royalty

Meanwhile, when the counsel asked about a purported gift by Arab royalty to Najib via more than RM60 million that was deposited into the then premier’s account in early 2011, the banker said she was not certain of it.

Uma said she could not confirm this as she was not privy to an alleged document - signed by one Saud Abdulaziz al-Saud dated Feb 1, 2011, and addressed to Najib - that was shown by Wan Aizuddin in court.

The lawyer was asking the banker about her previous testimony in court regarding two inflows into Najib’s account - RM30,449,929.97 on Feb 24, 2011, and RM30,179,909.46 on June 14, 2011.

Wan Aizuddin had large contents of the letter which included the title “Recognition of Contribution to the Islamic World”.

The lawyer then read out a portion of the document stating, “I have been following your work recently and I am impressed with the work that you have done to govern Malaysia using Islamic principles and how you are reintroducing Islam to the rest of the world, in view of the current perception that many people have since 9/11 ( a reference to the terrorist attack on the US on Sept 11, 2001).

“In view of the friendship that we have developed over the years and your new ideas as a modern Islamic leader, I hereby grant you a sum of US$100 million only (gift) which shall be remitted to you at such times and in such manner as I deem fit,” Wan Aizuddin read from the letter.

“You shall have absolute discretion to determine how the gift shall be utilised and I am confident that your actions will continue to promote Islam so it continues to flourish.

“This is merely a small gesture on my part but it is my way of contributing to the development of Islam in the world,” the counsel read out.

Later in proceedings today, 38th prosecution witness Yap Wai Keat - who is the head of AmBank’s capital market desk - testified that one Prince Faisal Turki Bandar al-Saud remitted RM60,629,839.43 into Najib’s account in two tranches - the first one on Feb 24, 2011, and the second on June 14, 2011.

Yap’s oral evidence also corroborated Uma Devi’s testimony over the money flow in and out of the 694 account.

Proceedings before trial judge Collin Lawrence Sequerah would resume tomorrow afternoon.

The charges

Najib is on trial for four counts of abuse of power and 21 counts of money laundering involving RM2.28 billion from 1MDB.

In relation to the four abuse of power charges, the Pekan MP was alleged to have committed the offence at AmIslamic Bank Berhad’s Jalan Raja Chulan branch in Bukit Ceylon, Kuala Lumpur, between Feb 24, 2011, and Dec 19, 2014.

On the 21 money laundering counts, Najib is purported to have committed the offences at the same bank between March 22, 2013, and Aug 30, 2013.

In the prosecution's opening statement at the beginning of the trial back on Aug 28, 2019, lead deputy public prosecutor Gopal Sri Ram contended that the crime was allegedly committed through four phases spanning from 2011 to 2014.

Prosecutors contended that the first nine money laundering charges relate to alleged receiving of RM2,081,476,926 which forms the subject matter of the amended third charge and that the monies purportedly fell into the accused's account ending 694 with AmIslamic Bank.

The prosecution claimed that between Aug 2, 2013, and Aug 23, 2013, the accused transferred a sum of RM2,034,350,000 to Tanore Singapore.

Prosecutors alleged that simultaneously, the accused had used the balance of RM22,649,000 to pay four entities and one individual, as the prosecution's case is that all these payments purportedly benefitted the accused.

They also contended that Najib received US$20 million (RM60,629,839.43) of 1MDB’s funds from Prince Faisal via two tranches of US$10 million each - the first tranche was on Feb 24, 2011, and the second tranche on June 14, 2011.

The prosecution contended that the wrongdoing at 1MDB was carried out by fugitive businessperson Low Taek Jho (Jho Low) and several others, with Najib’s blessing.

The accused’s defence team, however, claimed that the former prime minister had no knowledge of the crime perpetrated at 1MDB and the embezzlement was solely masterminded by Low and other members of the fund’s management.

Uma also previously testified for the prosecution in a separate criminal trial against Najib involving RM42 million of funds from SRC International Sdn Bhd, a former subsidiary of 1MDB.

Both 1MDB and SRC International are fully owned by the Minister of Finance Incorporated (MOF Inc).

Najib also used to be adviser emeritus to SRC International.

The BN advisory chairperson is serving a 12-year jail sentence, after the Federal Court on Aug 23 dismissed his appeal against the SRC International conviction over seven criminal charges, as well as the custodial term and RM210 million fine in lieu of an additional five years in jail.

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