Bank Negara to support agencies probing flow of funds to N. Korea

KUALA LUMPUR: Bank Negara Malaysia said on Thursday it will support law enforcement agencies investigating the possible flow of funds to North Korea.

This comes after Reuters reported the North Korean head of a Malaysian firm had for years sent money to Pyongyang's leadership.

Reuters on Monday cited a North Korean defector as saying that Han Hun-il, the founding chief executive of Malaysia Korea Partners (MKP), had for two decades funnelled funds to the central committee of Pyongyang's ruling Workers' Party.

MKP is also under investigation by the United Nations for the possible violation of sanctions on North Korea.

Deputy Home Minister Datuk Nur Jazlan Mohamed earlier said that the reports could damage Kuala Lumpur's reputation as a financial hub and called on the central bank to investigate the alleged transfer of funds to North Korea.

“Should there be any offence relating to the laws administered by Bank Negara Malaysia, an investigation will be conducted,” the central bank said in a statement Thursday.

Malaysia's historically close ties with North Korea have come under scrutiny following the assassination of Kim Jong-nam, the estranged half-brother of North Korean leader Kim Jong-un.

Reuters reported in February that North Korea’s spy agency was running an arms export operation out of Malaysia. – Reuters