Malaysian police on Wednesday (March 3) said they were investigating the husband of the country’s former central bank head for allegedly receiving funds linked to 1MDB, a state fund at the centre of a massive corruption scandal.
Malaysian and US authorities have said around US$4.5 billion (S$6 billion) was stolen from 1Malaysia Development Berhad (1MDB), in a globe-spanning scandal that has implicated the country’s former prime minister, US investment firm Goldman Sachs, and others.
Tawfiq Ayman, the husband of former Bank Negara Malaysia (BNM) governor Zeti Akhtar Aziz, is facing a money laundering investigation over the alleged transfer of 1MDB-linked funds into a bank account he owns in Singapore, Malaysian police said on Wednesday.
“Given that the case investigation involves evidence in Malaysia and other countries, the Royal Malaysian Police is taking further action by seeking mutual legal assistance … to obtain statements from abroad,” commercial crime investigations director Zainuddin Yaacob said in a statement.
A representative for Zeti and Tawfiq did not immediately respond to requests for comment.
When asked about the police probe, BNM referred to a statement that it disclosed all information received from foreign financial intelligence units to the relevant domestic law enforcement agencies.
Malaysian financial daily The Edge reported on Saturday that BNM had been alerted in 2015 and 2016 during Zeti’s tenure as governor about suspicious transactions involving a company owned by Tawfiq and the couple’s son.
The funds came from accounts linked to fugitive financier Jho Low , The Edge reported, citing official documents it had sighted.
Low, who has consistently denied wrongdoing, is wanted in the United States and Malaysia over his alleged central role in the 1MDB theft.
[[nid:516396]]
Meanwhile, Malaysia said on Wednesday audit firm Deloitte will pay the government US$80 million to resolve claims related to its auditing of 1MDB’s accounts between 2011 and 2014.
Deloitte has been under scrutiny for its role in auditing the financial statements of 1MDB
“The successful out-of-court settlement with Deloitte will expedite the payment of monies to fulfil 1MDB and SRC’s outstanding obligations, which would otherwise be delayed by potentially protracted and costly court battles,” the finance ministry said in a statement.
The agreement with Deloitte is the largest 1MDB-related settlement involving an audit firm in Southeast Asia, and is the latest after similar deals reached with US investment firm Goldman Sachs and Malaysian banking group AmBank.
Last week, AmBank said it would pay US$700 million to settle claims related to 1MDB probes, a hefty sum that the group said would have a material impact on its earnings.