AMMB agrees to RM2.83bil global settlement over 1MDB

KUALA LUMPUR: AMMB Holdings Bhd have agreed to a massive RM2.83bil global settlement on all outstanding claims and actions in relation to the AmBank Group’s involvement in the 1Malaysia Development Bhd (1MDB) matter.

This latest global settlement is part of the Malaysian Government’s continuing recovery efforts that it is pursuing against all parties directly or indirectly involved in 1MDB and its related entities.

In July last year, Goldman Sachs’ agreed to a RM15.8bil (US$3.9bil) settlement.

"These settlements will not absolve other entities and individuals of their alleged wrongful involvement in 1MDB, and they will continue to be pursued through the criminal justice system," the finance ministry said in a statement today.

The global settlement by AMMB also addresses the Securities Commission's (SC) requirements on compliance with its laws and guidelines.

"As part of the terms for the global settlement, the SC will require AmInvestment Bank Bhd to take corrective measures, including putting in place systems and processes to strengthen their due diligence framework for submission of corporate proposals," it said.

This global settlement will not affect or compromise Malaysia’s claims against individuals like Jho Low, Jasmine Loo and other parties related thereto and who are still being pursued in relation to the 1MDB scandal.

“This latest settlement is beneficial for the Malaysian people," finance minister Tengku Datuk Seri Utama Zafrul Aziz said.


"Resolving this through the court system would have cost a lot of time, money and resources. With this settlement, the payment of the monies will be expedited, instead of being held up by lengthy court battles, and can be utilised to fulfil 1MDB’s outstanding obligations.” he added.

This settlement amount is in addition to the RM53.7mil penalty already imposed by Bank Negara and paid by the AmBank Group.

The AmBank Group has taken comprehensive measures to address the lapses associated with these transactions, the statement said. These include measures under a remediation programme that Bank Negara required the AmBank Group to implement, led by the new board and senior management team currently in place.

"With these measures, the AmBank Group is well placed to continue safeguarding depositors’ funds and shareholders’ interests, and its future growth."