PETALING JAYA: Bank Negara has issued a letter of administrative compound to 1Malaysia Development Bhd (1MDB) for failure to comply with directions issued under the Financial Services Act 2013.
The central bank said in a statement that it had taken the action after receiving the consent from the Attorney-General.
1MDB, in an immediate response, said in a statement that it respects the decision of Bank Negara and would pay the compound.
â€œ1MDB refers to the statement from Bank Negara, confirming the closure of investigations on 1MDB and the imposition of an administrative compound for non-compliance with certain directions of Bank Negara,â€ it said.
Earlier, Bank Negara said 1MDB had failed to submit evidence and documentation specified by the central bank to justify its inability to fully-comply with the repatriation order.
â€œ1MDB has been given until May 30 to pay the compound. The payment of the compound marks the conclusion of the investigation by Bank Negara on the contraventions to the rules and regulations of the central bank,â€ it said.
â€œThis includes the requirement for 1MDB to repatriate monies remitted abroad following the revocations of the three permissions granted by Bank Negara to 1MDB in 2009, 2010 and 2011,â€ it said.