‘There is a limit to actions Bank Negara can take’

KUALA LUMPUR: Bank Negara has yet to determine whether a local financial institution involved in the transfer of funds into accounts purportedly owned by the Prime Minister breached regulations.

Governor Tan Sri Dr Zeti Akhtar Aziz said this was not under the purview of the central bank and it could only assist enforcement agencies that were investigating it.

“We cannot take action against any individuals or businesses in any areas where the law doesn’t give us power to do so,” she told a packed press briefing yesterday.

“But if these enforcement agencies come to us for our assistance as it involves developments in our sectors (we’ll give it), but we are not the ones who conduct the investigation and take action because we don’t have the powers to do so.”

Zeti added that Bank Negara did not have the authority to look into an individual’s account unless a financial institution raised a red flag by submitting a Suspicious Transaction Report (STR).

She said financial institutions were supposed to conduct due diligence and if everything was in order, Bank Negara would not be informed.

She added that under the Anti-Money Laundering Act, it was the financial institutions’ responsibility to look into the source of money.

“If they suspect something, a STR would be submitted to Bank Negara and we will become aware of it,” she said.

Asked whether the central bank had received a STR in relation to the US$700mil (RM2.6bil) money deposited into Datuk Seri Najib Tun Razak’s account, Zeti replied:

“We are investigating the compliance of the financial institution with this requirement. That is all I can say.”

Zeti also revealed that seven of her officers were questioned by the police with regard to the purported leakage of documents from the investigations into 1MDB.

While she was not among the seven, she said Bank Negara would continue working with the police.

Inspector-General of Police Tan Sri Khalid Abu Bakar confirmed yesterday that the police were investigating the leak.

“It’s not just Bank Negara; we have asked people from commercial banks and other witnesses to help us,” he said in Subang Jaya.

Khalid said the central bank officers, who were initially investigated under the Computer Crimes Act, were now being investigated under the Financial Services Act 2013 after Zeti gave the police the authority to do so.