Financial community observing how Malaysia handles 1MDB issues: Zeti

Financial community observing how Malaysia handles 1MDB issues: Zeti

KUALA LUMPUR - The international financial community is watching how Malaysia handles issues relating to 1MDB.

Bank Negara Malaysia governor Tan Sri Zeti Akhtar Aziz said there were rules and regulations with regards to matters on anti-money laundering and terrorism financing; and that such issues were monitored by the Financial Action Task Force.

She added the public deserved to get some answers as well.

Replying to a question in a forum whether domestic affairs, in particular the issues surrounding 1MDB have contributed to the ringgit's depreciation, Zeti said the international community had assessed Malaysia's financial system and it had passed the test.

"But they want to see further enforcement.

"They will come and see whether we are complying with the standards that they have set.

"This is a time and age where no one can hide ... they would track down any irregular activities," she said to participants attending the Malaysia Economic Update 2015 panel discussion yesterday.

Zeti added the task force had set the standards and stressed the standards had been greatly strengthened throughout recent years.

Bank Negara is one of the three agencies investigating the 1MDB cash flow problem due to its debts of almost RM42 billion (S$13.89 billion).

Recently, The Wall Street Journal reported that money paid by 1MDB by International Petroleum Investment Corp could not be accounted for by the Abu Dhabi fund.

Zeti said that Bank Negara has completed its investigation in relation to 1MDB financial dealings, and already handed its findings to the Attorney-General's Chambers.

"These are on-going and will yield an outcome.

"The public wants some answers and they deserve to know," she said.

Zeti also mentioned three other external factors that contributed to the depreciation of the ringgit, namely the US Federal Reserve unchanged decision on interest rates, sluggish overall global economy and China's economy stabilisation.

The Bank Negara Governor was one of the forum panelists alongside Minister in the Prime Minister's Department Datuk Seri Abdul Wahid Omar, International Trade and Industry Minister Datuk Seri Mustapa Mohamed and Pemandu CEO Datuk Seri Idris Jala.

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