Malaysia central bank fines 1MDB for non-compliance, ends investigation

Malaysia’s central bank slapped a fine on 1Malaysia Development Bhd and announced it was ending its investigation into the troubled state fund, drawing one line under months of probes of 1MDB’s finances.

1MDB failed to explain why it can’t send back some funds from overseas, and has until May 30 to pay the fine for non-compliance, the central bank said in a Thursday statement. Bank Negara did not specify the size of the fine or how much 1MDB was required to repatriate.

The fund was ordered to repatriate the money after the central bank revoked three permissions granted in 2009, 2010 and 2011, Bank Negara said. The fine was issued with the consent of the attorney general.

Central bank governor Zeti Akhtar Aziz, who steps down at the end of this month, has been blunt in her criticism of 1MDB. The bank had requested criminal proceedings at least twice against 1MDB, although its efforts were dismissed by the attorney general’s office. Zeti said last month the central bank was pursuing administrative enforcement actions against 1MDB and that she wanted to bring closure to the case and hand over a clean slate to her successor.

Zeti, 68, has led the central bank for 16 years, with Deputy Governor Muhammad Ibrahim named by Prime Minister Najib Razak this week as her successor.