Scandals to the likes of 1MDB won’t be repeated in Malaysia, says Governor

In a recent interview with the media, the governor of Malaysian Central Bank stated that scandals like 1MDB are highly unlikely to take place again in the country. 1MDB which was formulated to promote development of Malaysia became center point of world’s largest money laundering and corruption scandals, since billions-of-dollars were embezzled from it. Due to that incident, Malaysia’s image got tarnished. In the past investors from around the world put their money to do business inside the country but now foreign investors have lost their confidence.

On Saturday, Nor ShamsiahMohdYunus stated that several steps have been taken by the officials of new government so that they can stop any future financial scandal. In another statement, the governor of central bank stated that the government has undertaken such structural reforms which will inculcate such a system, culture and framework which would eradicate corruption.

She further stated that during the beginning of present month a bill was passed by Malaysian lawmakers so that they can formulate national body which would take part in co-coordinating the investigations. In the meantime, compliance culture is getting strengthened by central bank which would provide help in proper maintenance of financial system’s integrity.

In 6 different nations, including Switzerland, US and Singapore authorities have investigated wrongdoings in relation to 1MDB. As per the Justice Department of America, $4.5 billion were laundered through different shell companies and bank accounts via several countries. Out of that laundered money several million dollars were deposited in NajibRazak’s bank account who was the former prime minister of Malaysia.

Goldman Sachs also had an involvement in the present scandal, and the investment bank of US was also held responsible to topple Najib’s government during last year’s general election in Malaysia. At present, multiple corruption charges were held against Najib but he denied every other accusation.

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