Malaysia Central Bank Says 1MDB Probe Closed

Malaysia's central bank said it has concluded a probe into state-run investment fund 1MDB and imposed an undisclosed penalty, according to a report.

«We have completed all our investigations on 1MDB based on all the information (available for us) and the investigations papers,» central bank governor Muhammad Ibrahim said according to a report in «The Strait Times».

«We have imposed a penalty on the company,» he said, without elaborating.

Contrast to U.S. Probe

The move stands in stark contrast to a broader U.S.-led probe into alleged graft at 1MDB. Investigators in at least six countries are piecing through an international offshore money trail they believe shows that billions in state money were pilfered from the fund for private use, including to buy fine art and luxury real estate.

Malaysia's official response to the alleged wrong-doing has been independently reported to be flawed and fraught with political pressure. Muhammed denied this, and indicated that Malaysia wouldn't open a new investigation following the U.S. push.

No New Investigation

«We have taken all the necessary actions against the company as entrusted to us under the law, and we have closed the investigations,» he in response to whether Bank Negara would reopen the 1MDB probe following the U.S. findings.

U.S. officials are seeking to seize more than $1 billion in funds and assets suspected of being siphoned from 1MDB. Prosecutors don't mention Prime Minister Najib Razak by name, but they do name his step-son, Riza Aziz as well as an unnamed Malaysia government official who has been identified as the PM.

Collaborate with U.S.

The Negara official signalled Malaysia, which has pledged not to shield wrong-doers from outside probes, would cooperate with U.S. if asked.

«When it comes to international collaborations, we are dictated by certain protocols,» he said. «We will abide strictly by those protocols when it comes to cooperation with any external investigating bodies,» Muhammad said at a press conference on Malaysia's economic data.

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